Notice 2016-12 - Notice 2016–12

Notice 2016–12

Maximum Vehicle Values for 2016 for Use With Vehicle Cents-Per-Mile and Fleet-Average Valuation Rules

PURPOSE

This notice provides the maximum vehicle values for 2016 that taxpayers need to determine the value of personal use of employer-provided vehicles under the special valuation rules provided under section 1.61–21 (d) and (e) of the Income Tax Regulations.

MAXIMUM VEHICLE VALUES

The maximum value of employer-provided vehicles first made available to employees for personal use in calendar year 2016 for which the vehicle cents-per-mile valuation rule provided under Regulation section 1.61–21(e) may be applicable is $15,900 for a passenger automobile and $17,700 for a truck or van.

The maximum value of employer-provided vehicles first made available to employees for personal use in calendar year 2016 for which the fleet-average valuation rule provided under Regulation section 1.61–21(d) may be applicable is $21,200 for a passenger automobile and $23,100 for a truck or van.

EFFECTIVE DATE

This notice applies to employer-provided passenger automobiles first made available to employees for personal use in calendar year 2016.

DRAFTING INFORMATION

The principal author of this notice is Kathleen Edmondson of the Office of the Division Counsel/Associate Chief Counsel (Tax Exempt & Government Entities). For further information on this notice contact Ms. Edmondson on (202) 317-6798 (not a toll-free number).