Calculating Personal Use of Company Vehicle Worksheet 2019

A comprehensive tool to determine the taxable value of the personal use of a company-provided vehicle based on the 2019 IRS Annual Lease Value method.

2019 Vehicle Use Calculator

Calculation Summary Table

Metric	Value	Notes
Vehicle FMV		Input Value
Annual Lease Value (ALV)		From IRS Table for 2019
Proration Factor		(Days Available / 365)
Prorated ALV		ALV × Proration Factor
Total Miles		Input Value
Personal Miles		Input Value
Personal Use %		Personal / Total Miles
Vehicle Use Value		Prorated ALV × Personal Use %
Fuel Value		Personal Miles × $0.055 (2019 rate)
Total Taxable Value		Vehicle Value + Fuel Value

This table shows the step-by-step breakdown of the personal use calculation.

What is the ‘Calculating Personal Use of Company Vehicle Worksheet 2019’?

The “calculating personal use of company vehicle worksheet 2019” refers to the process and calculations required by the IRS for determining the taxable fringe benefit value when an employee uses a company-provided car for personal reasons. For the 2019 tax year, any personal use of a company vehicle, including commuting, is considered a non-cash benefit that must be valued and included in the employee’s gross income. Employers are responsible for this calculation and reporting it on the employee’s Form W-2.

This calculator is specifically designed for this purpose, using the IRS’s “Annual Lease Value” (ALV) method, which is one of the most common valuation rules. It helps both employers and employees understand the financial implications of this valuable perk. Common misunderstandings often involve what constitutes “personal use” (it’s any mileage that isn’t for business) and how the value is determined (it’s not simply the cost of gas).

The 2019 Annual Lease Value Formula and Explanation

The core of this calculation is the Annual Lease Value (ALV) method. The formula is not a simple equation but a multi-step process based on IRS guidelines from Publication 15-B for the year 2019.

The general formula is:

Total Taxable Value = (Prorated Annual Lease Value × Personal Use Percentage) + Value of Employer-Provided Fuel

Here is a breakdown of the variables involved in the calculation:

Variable Explanations for the Personal Use Calculation

Variable	Meaning	Unit	Typical Range
Fair Market Value (FMV)	The value of the vehicle on the first day it’s available for personal use.	USD ($)	$10,000 – $59,999+
Annual Lease Value (ALV)	A value determined from an official IRS table based on the vehicle’s FMV.	USD ($)	$600 – $15,250+
Prorated ALV	The ALV adjusted for the number of days the vehicle was available during the year.	USD ($)	Dependent on ALV and days available.
Personal Use Percentage	The ratio of personal miles to total miles driven.	Percentage (%)	0% – 100%
Value of Fuel	An additional taxable amount if the employer pays for fuel used for personal trips. For 2019, this could be valued at 5.5 cents per mile.	USD ($)	Dependent on personal mileage.

Practical Examples

Example 1: Standard Full-Year Use

An employee has a company car for all of 2019. The car’s FMV is $32,500. They drove 25,000 total miles, with 6,000 of those being personal miles (including commuting). The employer paid for all the fuel.

• Inputs: FMV = $32,500, Total Miles = 25,000, Personal Miles = 6,000, Days = 365, Fuel Provided = Yes.
• Calculation:
  1. The ALV for a $32,500 car is $8,750 (from the 2019 IRS table).
  2. Personal Use Percentage = (6,000 / 25,000) = 24%.
  3. Vehicle Use Value = $8,750 × 24% = $2,100.
  4. Fuel Value = 6,000 miles × $0.055/mile = $330.
• Result: The total taxable fringe benefit to be added to the employee’s W-2 is $2,100 + $330 = $2,430.

Example 2: Partial-Year Use

An employee starts a new job and is given a company car on July 1, 2019. The vehicle’s FMV is $45,000. From July 1 to Dec 31 (184 days), they drive 12,000 total miles, and 4,000 are personal. The employee pays for their own fuel.

• Inputs: FMV = $45,000, Total Miles = 12,000, Personal Miles = 4,000, Days = 184, Fuel Provided = No.
• Calculation:
  1. The ALV for a $45,000 car is $11,750 (from the 2019 IRS table).
  2. Proration Factor = 184 / 365 = 0.504.
  3. Prorated ALV = $11,750 × 0.504 = $5,922.
  4. Personal Use Percentage = (4,000 / 12,000) = 33.33%.
  5. Vehicle Use Value = $5,922 × 33.33% = $1,974.
  6. Fuel Value = $0.
• Result: The total taxable fringe benefit is $1,974. See our fringe benefit tax calculator for more details.

How to Use This ‘Calculating Personal Use of Company Vehicle’ Calculator

Using this tool is straightforward. Follow these steps to accurately determine the taxable value:

1. Enter Vehicle FMV: Input the Fair Market Value of the car as of the first day it was used in 2019.
2. Enter Total Mileage: Provide the total miles the car was driven throughout the year (or the period it was available).
3. Enter Personal Mileage: Input the portion of the total miles that were for personal use, including daily commutes. A good way to track this is with a mileage log generator.
4. Enter Days Available: Adjust this from the default of 365 if the car was only available for part of the year.
5. Check Fuel Box: Tick the checkbox if your employer paid for the gasoline for personal trips.
6. Calculate & Interpret: Click “Calculate”. The “Total Taxable Fringe Benefit Value” is the primary result you need for tax reporting. The intermediate values help you understand how the final number was derived.

Key Factors That Affect the Calculation

• Vehicle’s Fair Market Value (FMV): This is the single most significant factor. A higher FMV leads directly to a higher Annual Lease Value and, therefore, a higher taxable benefit.
• Personal Use Percentage: The ratio of personal to total miles directly scales the taxable amount. Reducing personal mileage is the most effective way for an employee to lower the taxable value.
• Days Available: If a vehicle is available for less than a full year, the Annual Lease Value is prorated, reducing the total taxable amount.
• Employer-Provided Fuel: This adds a separate taxable value to the total. If an employee pays for their own personal-use fuel, this amount is zero. This is a key part of the company car tax rules.
• The Tax Year: The ALV tables and fuel valuation rates can change. This calculator is specifically for 2019. For other years, consult the relevant IRS Publication 15-B.
• Accurate Record-Keeping: The entire calculation relies on accurate mileage logs. Without them, the IRS may assume 100% personal use, leading to a much higher tax liability.

Frequently Asked Questions (FAQ)

What is considered personal use of a company vehicle?

Personal use is any use of the vehicle that is not for your employer’s business. This includes commuting between your home and your main place of work, running personal errands, weekend trips, and use by a spouse or family member.

How is the Fair Market Value (FMV) determined for the 2019 worksheet?

The FMV is the amount a person would pay to purchase the vehicle from a third party in an arm’s-length transaction. For a car purchased by the employer, the safe-harbor value is the employer’s cost, including taxes and fees.

Do I have to use the Annual Lease Value method?

No, there are other methods like the Cents-per-Mile rule and the Commuting rule. However, the Cents-per-Mile method in 2019 had a vehicle value limit, making the ALV method necessary for more expensive cars. Our guide to employee compensation covers this in more detail.

What if the vehicle was only available for a few weeks?

The calculation still works. You would enter the number of days the car was available (e.g., 21 days), and the calculator will prorate the Annual Lease Value accordingly to find the correct taxable amount.

Are maintenance and insurance included in the Annual Lease Value?

Yes, the IRS Annual Lease Value is designed to include the value of maintenance and insurance provided by the employer. You do not add these costs separately. However, it does not include the value of fuel.

What happens if I don’t keep a mileage log?

Without a detailed, contemporaneous mileage log to substantiate business use, the IRS can deem 100% of the vehicle’s use as personal. This would result in the full prorated Annual Lease Value (plus fuel) being added to your income.

Is commuting to work considered business or personal use?

Commuting is explicitly defined by the IRS as personal use. Miles driven from your home to your primary workplace are personal miles and must be included in the calculation.

How does this get reported on my taxes?

The employer calculates the total taxable fringe benefit and includes it in the employee’s wages in Box 1, Box 3, and Box 5 of their Form W-2. It will also be listed with code “38” in Box 14.

Related Tools and Internal Resources

Explore these other resources for more information on fringe benefits, taxes, and employee compensation: