IRS publishes maximum FMVs for business automobiles using the cents-per-mile and fleet average valuation methods

The IRS has published the maximum fair market values (FMVs) of business automobiles, trucks, and vans first placed into service during 2010 for which the vehicle cents-per-mile method may be used to value personal use by employees and the fleet-average valuation method may be used to calculate the value of the vehicle. The figures for 2010 are higher across the board than those for 2009.

Under the cents-per-mile valuation method, employees' personal use of company vehicles may be valued by multiplying the miles driven by 55 cents, the 2010 standard mileage rate. The maximum FMVs for vehicles for employers using this method are

• $15,300 for passenger automobiles (up from $15,000 in 2009), and
• $16,000 for trucks or vans (up from $15,200 in 2009).

Under the fleet-average valuation method, taxpayers can calculate the value of their vehicles according to their average value of their entire fleet if they own at least 20 automobiles. For 2010, the maximum FMVs for vehicles under this method of valuation are:

• $20,300 for passenger automobiles (up from $19,900 in 2009), and
• $21,000 for trucks or vans (up from $19,900 in 2009).