Available at https://www.irs.gov/pub/irs-irbs/irb16-06.pdf

The IRS has set the maximum vehicle values that limit use of the cents-per-mile and fleet-average valuation rules for employer-provided vehicles first made available to employees for personal use in calendar year 2016. Those rules are optional methods for determining the value of an employee’s personal use of an employer-provided vehicle; they can be used only if the vehicle’s fair market value does not exceed the applicable dollar limit. For employer-provided vehicles that are first made available to employees for personal use in calendar year 2016, the maximum values for which the cents-per-mile rule may be used are $15,900 for passenger automobiles (a decrease of $100) and $17,700 for trucks or vans (an increase of $200). The maximum values for which the fleet-average rule may be used are $21,200 for passenger automobiles (a decrease of $100) and $23,100 for trucks or vans (an increase of $200).

Comment: Employees who use a company car for commuting or other personal uses that are more than de minimis will realize income on the value of their personal use. That value may be determined using a general valuation rule or one of three special valuation rules: the automobile annual lease valuation rule, the cents-per-mile rule, or the commuting valuation rule. The cents-per-mile rule determines the value of an employee’s personal use by multiplying the business standard mileage rate (54 cents per mile for 2016) by the number of miles driven for personal purposes. Although the cents-per-mile rule seems simple, it is often unavailable due to its strict conditions, including the requirement that the vehicle’s fair market value not exceed IRS limits. The fleet-average rule is a special application of the automobile annual lease valuation rule that allows employers operating a fleet of 20 or more qualifying automobiles to use an average annual lease value for every qualifying vehicle in the fleet. It may be especially useful when employees do not always use the same vehicle.