Calculating Personal Use Of Company Vehicle Worksheet 2018

Personal Use of Company Vehicle Worksheet 2018 Calculator

Calculate the taxable fringe benefit value for personal use of a company vehicle based on 2018 IRS rules.

PUCV Calculator

Vehicle’s Fair Market Value (FMV)

Enter the original fair market value of the vehicle in the year it was first made available for use.

Total Miles Driven in the Year

Enter the total miles the vehicle was driven during the tax year.

Total Personal Miles Driven in the Year

Includes commuting and any other non-business travel.

Employer provided the fuel

What is the Personal Use of a Company Vehicle Worksheet (2018)?

The “Personal Use of a Company Vehicle” (PUCV) is a taxable, non-cash fringe benefit provided to an employee. According to the IRS, if an employer provides a vehicle to an employee that is used for both business and personal travel, the value of that personal use must be calculated and included in the employee’s gross income. A calculating personal use of company vehicle worksheet 2018 is a tool used to determine this value based on the specific rules and rates applicable to the 2018 tax year. This ensures both the employer and employee are compliant with tax laws. Personal use typically includes commuting to and from work, running personal errands, or taking the vehicle on vacation.

This calculator is specifically designed for the calculating personal use of company vehicle worksheet 2018, using the most common valuation method: the Annual Lease Value (ALV) rule.

The 2018 Annual Lease Value (ALV) Formula

The primary method for determining the value of personal use is the Annual Lease Value (ALV) method. This involves looking up a value from an IRS table based on the vehicle’s Fair Market Value (FMV). That value is then prorated by the percentage of personal miles driven.

The general formula is:

Taxable Benefit = (Annual Lease Value × Personal Use %) + Fuel Valuation

If the employer also provides fuel, a separate calculation at a standard rate (5.5 cents per personal mile in 2018) is added to the total.

Formula Variables
Variable	Meaning	Unit	Typical Range
Fair Market Value (FMV)	The value of the vehicle when first provided.	USD ($)	$15,000 – $59,999+
Annual Lease Value (ALV)	An IRS-determined value based on the FMV.	USD ($)	$4,350 – $15,250+
Personal Use Percentage	The ratio of personal miles to total miles.	Percentage (%)	5% – 100%
Fuel Valuation	The value of employer-provided fuel for personal miles.	USD ($)	$0 or higher

Practical Examples

Example 1: Moderate Personal Use

An employee is provided a company car with an FMV of $28,500. In 2018, they drove a total of 18,000 miles, of which 4,500 were personal miles. The employer did not provide fuel.

Personal Use %: (4,500 / 18,000) = 25%
Annual Lease Value (from 2018 table for $28,500 FMV): $7,750
Vehicle Use Value: $7,750 × 25% = $1,937.50
Fuel Valuation: $0
Total 2018 Taxable Benefit: $1,937.50

Example 2: High Personal Use with Fuel

Another employee uses a company truck with an FMV of $45,000. They drove 25,000 total miles in 2018, with 15,000 being personal miles (including commuting). The employer provided all fuel.

Personal Use %: (15,000 / 25,000) = 60%
Annual Lease Value (from 2018 table for $45,000 FMV): $11,750
Vehicle Use Value: $11,750 × 60% = $7,050.00
Fuel Valuation: 15,000 miles × $0.055/mile = $825.00
Total 2018 Taxable Benefit: $7,050.00 + $825.00 = $7,875.00

How to Use This Calculator for the 2018 Worksheet

Follow these steps to complete your calculating personal use of company vehicle worksheet 2018:

Enter Vehicle FMV: Input the Fair Market Value of the vehicle as of the date it was first made available to the employee.
Add Total Miles: Provide the total mileage driven for the entire 2018 tax year.
Add Personal Miles: Enter the number of miles driven for personal purposes, including commuting.
Check Fuel Box: If the employer paid for the gasoline for personal trips, check the “Employer provided the fuel” box.
Review Results: The calculator automatically determines the Annual Lease Value, personal use percentage, and the total taxable fringe benefit to be added to the employee’s W-2.

Key Factors That Affect PUCV Calculation

Vehicle’s Fair Market Value (FMV): This is the most significant factor. A higher FMV results in a higher Annual Lease Value and, consequently, a larger taxable benefit.
Ratio of Personal to Total Miles: The higher the percentage of personal use, the greater the portion of the Annual Lease Value is considered income. Accurate record-keeping is critical here.
Employer-Provided Fuel: Checking this box adds a separate valuation to the total benefit, increasing the employee’s taxable income. For 2018, this was calculated at 5.5 cents per personal mile.
Availability of the Vehicle: The calculation assumes the vehicle was available for the full year. If it was only available for a portion of the year, the ALV must be prorated.
Employee Reimbursement: If the employee reimburses the employer for personal use, this amount can reduce the taxable benefit. This calculator does not account for reimbursements.
Accurate Mileage Logs: The IRS requires detailed, contemporaneous records to substantiate business use. Without them, all use may be deemed personal, maximizing tax liability.

Frequently Asked Questions (FAQ)

1. What is considered “personal use”?

Personal use includes any travel that is not for a business purpose. The two most common examples are commuting between your home and regular place of work, and running personal errands or taking trips on weekends.

2. Are the rules for a 2018 worksheet still relevant?

While the fundamental principles remain, the specific values (like the Annual Lease Value table and fuel rate) are updated periodically by the IRS. This calculator is specifically for the 2018 tax year. For current calculations, you must consult the latest IRS Publication 15-B.

3. What is the Cents-Per-Mile Rule?

The Cents-Per-Mile rule is an alternative valuation method. For 2018, the rate was 54.5 cents per personal mile driven. However, this method had restrictions and was typically only available for vehicles with an FMV below a certain threshold.

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

If an employee cannot substantiate business mileage with adequate records, the IRS can assume 100% of the vehicle’s use was personal. This would make the entire Annual Lease Value plus fuel a taxable benefit.

5. How is the Fair Market Value (FMV) determined?

FMV is the amount a person would pay to purchase the vehicle from a third party. For a new car, it’s typically the purchase price. For a leased car, it can be the manufacturer’s suggested retail price.

6. Does this apply to trucks and vans?

Yes, the Annual Lease Value method applies to all automobiles, including trucks and vans, provided to employees.

7. What if the vehicle was only available for part of the year?

If the vehicle was available for fewer than 365 days, the Annual Lease Value must be prorated. For example, if it was available for 6 months (approx. 50% of the year), you would use 50% of the ALV in your calculation.

8. Is the taxable benefit subject to FICA taxes?

Yes, the value of personal use is considered wages and is subject to Social Security and Medicare (FICA) taxes, as well as federal and state income tax withholding.

Related Tools and Internal Resources

Payroll Tax Calculator: Estimate payroll deductions on compensation, including fringe benefits.
Guide to Taxable Fringe Benefits: A complete overview of various employee benefits and their tax implications.
Business Mileage Reimbursement Calculator: Calculate reimbursements for using a personal vehicle for business.
Tax Planning Resources for Small Business: Explore strategies for optimizing your business tax situation.
W2 Form Generator: Prepare W-2 forms for your employees.
Contact a Tax Expert: Get professional advice on your specific tax questions.