Personal use of a company vehicle
November 7, 2018
The value of an employee’s personal use of a company vehicle must be included in the employee’s income for Social Security, Medicare and income taxes.
There are several valuation methods you can use to determine the value of the personal use. These include a general valuation method and three optional special valuation rules used under certain conditions. The special valuation methods may be more advantageous than the general valuation method and consist of 1) the annual lease valuation, 2) cents-per-mile and 3) commuting valuation.
Please consult with your accountant if you need help determining the best method to use and calculating taxability for personal use of a company vehicle.
For important year-end reminders and new updates for the coming year, register for HKP’s 2018 Year-End Update webinar by following the link below.
HKP’s 2018 Year-End Update
Thursday, Dec. 6, 11 a.m.–noon CST