Notice 2014-11 - Maximum value of employer-provided vehicles eligible for special rules to determine value of personal use in 2014 

March 21:  Notice 2014-11—which appears in Internal Revenue Bulletin 2014-13 (dated Monday, March 24, 2014)—provides the maximum value of a vehicle first provided by an employer in 2014 for which the employee’s personal use can be valued using the vehicle cents-per-mile method or the fleet-average valuation method.

Background

The value of an employee’s personal use of an employer-provided vehicle is gross income to the employee, and generally must be reported as wages on Form W-2.


There are several methods available to determine the value of this use. The cents-per-mile method and the fleet-average valuation method are permitted only for vehicles up to a certain fair market value when they are first made available to an employee. These limitations are adjusted annually for inflation.


Previously, the IRS provided the maximum vehicle values in an annual revenue procedure. Because the guidance for calculating and applying these maximum vehicle values is provided by regulation, and does not change from year to year, the IRS began in 2013 to publish these vehicle values in an annual notice.

Maximum vehicle values

Notice 2014-11—appearing on page 880 of the Internal Revenue Bulletin [PDF 1.25 MB]—provides that the maximum value of an employer-provided vehicle first made available to employees for personal use in calendar year 2014 for which the vehicle cents-per-mile valuation rule provided under Reg. section 1.61-21(e) may be applicable is:


  • $16,000 for a passenger automobile (same as for 2013)
  • $17,300 for a truck or van (up from $17,000 for 2013)

The maximum value of an employer-provided vehicle first made available to employees for personal use in calendar year 2014 for which the fleet-average valuation rule provided under Reg. section 1.61–21(d) may be applicable is:


  • $21,300 for a passenger automobile (up from $21,200 for 2013)
  • $22,600 for a truck or van (up from $22,300 for 2013)



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