Publication 15-B - Employer'S Tax Guide To Fringe Benefits - 2012 Page 25
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33Mileage test. A vehicle meets the mileage test for a calen-
includes the value of fuel you provide. If you do not provide
fuel, you can reduce the rate by no more than 5.5 cents.
dar year if both of the following requirements are met.
For special rules that apply to fuel you provide for miles
•
The vehicle is actually driven at least 10,000 miles
driven outside the United States, Canada, and Mexico, see
during the year. If you own or lease the vehicle only
Regulations section 1.61-21(e)(3)(ii)(B).
part of the year, reduce the 10,000 mile requirement
The value of any other service you provide for a vehicle
proportionately.
is not included in the cents-per-mile rate. Use the general
•
The vehicle is used during the year primarily by
valuation rule to value these services.
employees. Consider the vehicle used primarily by
employees if they use it consistently for commuting.
Commuting Rule
Do not treat the use of the vehicle by another individ-
ual whose use would be taxed to the employee as
Under this rule, you determine the value of a vehicle you
use by the employee.
provide to an employee for commuting use by multiplying
each one-way commute (that is, from home to work or from
For example, if only one employee uses a vehicle during
work to home) by $1.50. If more than one employee com-
the calendar year and that employee drives the vehicle at
mutes in the vehicle, this value applies to each employee.
least 10,000 miles in that year, the vehicle meets the
This amount must be included in the employee’s wages or
mileage test even if all miles driven by the employee are
reimbursed by the employee.
personal.
You can use the commuting rule if all the following
requirements are met.
Consistency
requirements. If
you
use
the
•
You provide the vehicle to an employee for use in
cents-per-mile rule, the following requirements apply.
your trade or business and, for bona fide noncom-
•
You must begin using the cents-per-mile rule on the
pensatory business reasons, you require the em-
first day you make the vehicle available to any em-
ployee to commute in the vehicle. You will be treated
ployee for personal use. However, if you use the
as if you had met this requirement if the vehicle is
commuting rule (discussed later) when you first
generally used each workday to carry at least three
make the vehicle available to any employee for per-
employees to and from work in an employer
sonal use, you can change to the cents-per-mile rule
sponsored commuting pool.
on the first day for which you do not use the
•
You establish a written policy under which you do
commuting rule.
not allow the employee to use the vehicle for per-
•
You must use the cents-per-mile rule for all later
sonal purposes other than for commuting or de
years in which you make the vehicle available to any
minimis personal use (such as a stop for a personal
employee and the vehicle qualifies, except that you
errand on the way between a business delivery and
can use the commuting rule for any year during
the employee’s home). Personal use of a vehicle is
which use of the vehicle qualifies under the commut-
all use that is not for your trade or business.
ing rules. However, if the vehicle does not qualify for
•
The employee does not use the vehicle for personal
the cents-per-mile rule during a later year, you can
purposes other than commuting and de minimis per-
use for that year and thereafter any other rule for
sonal use.
which the vehicle then qualifies.
•
If this vehicle is an automobile (any four-wheeled
•
You must continue to use the cents-per-mile rule if
vehicle, such as a car, pickup truck, or van), the
you provide a replacement vehicle to the employee
employee who uses it for commuting is not a control
(and the vehicle qualifies for the use of this rule) and
employee. See Control employee below.
your primary reason for the replacement is to reduce
federal taxes.
Vehicle. For this rule, a vehicle is any motorized wheeled
vehicle, including an automobile manufactured primarily
Items included in cents-per-mile rate. The
for use on public streets, roads, and highways.
cents-per-mile rate includes the value of maintenance and
insurance for the vehicle. Do not reduce the rate by the
Control employee. A control employee of a nongovern-
value of any service included in the rate that you did not
ment employer for 2012 is generally any of the following
provide. You can take into account the services actually
employees.
provided for the vehicle by using the
General Valuation
•
A board or shareholder-appointed, confirmed, or
Rule, earlier.
elected officer whose pay is $100,000 or more.
For miles driven in the United States, its territories and
•
possessions, Canada, and Mexico, the cents-per-mile rate
A director.
Publication 15-B (2012)
Page 25
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