How to “W-2” the vehicles you provide to employees

If you provide your employee(s) with vehicles for business use, you’ll have to do a little calculating.

You see, because your employees personal use of the vehicles must be included in their wages, you’ll need to apply the correct valuation rules.

Sound complicated? It is. We’re dealing with the IRS! But don’t worry. We’ll explain the three IRS-approved valuation methods you can use when you read my new article titled Tax Tips: How to W-2 the Vehicle You Provide to an Employee.

Three ways our fact-filled article can help you:

1. We’ll explain the automobile “lease valuation rule.” To calculate the IRS’s lease value, you’ll need to follow four steps. We’ll list them for you when you read the full article.
2. You’ll learn how to use the “vehicle cents-per-mile rule.” To take advantage of this method, you must satisfy one of two IRS rules. We’ll explain them in easy-to-understand language when you read the full article.
3. We’ll tell you how to use the IRS’s “commuting rule.” This rule provides that personal use for commuting can be valued at $1.50 each way if all of six conditions are satisfied. You’ll learn what they are when you read the full article.