What does the AICPA’s 2017 Vehicle Policy and Income Inclusion Guide mean for me?

As a member of the American Institute of Certified Public Accountants (AICPA), our CPAs have access to resources that help us keep up with changes related to tax reform and guidelines for navigating tax code.

When the AICPA’s 2017 Vehicle Policy and Income Inclusion guide came across our desks, we wanted to pass it along to you. Here’s a quick overview of what’s included in the guide, taken directly from AICPA’s website:

Employer policies regarding use of company vehicles

Three policies have been included that may be provided to clients as examples. Policies 1 and 2 are optional for an employer. Policy 3 is required in some form by all employers providing company-owned personal use vehicles. The policies should be reviewed to determine if there are conflicts with state or local laws.

Employee representation regarding use of company vehicle and worksheet to calculate income from personal use of company vehicle

The IRS requires the value of the personal use of employer-provided vehicles to be included in the compensation of the employee if the employee does not reimburse the employer. Forms are included for the employer to collect the necessary data from the employee and calculate the value of the personal use.

Worksheet to calculate “inclusion amount” for leased vehicles

The IRS requires lessees of luxury vehicles to calculate an “inclusion amount” to be included in their gross income. This inclusion amount must be considered by taxpayers that have leased a vehicle for a term of 30 days or more. By means of the inclusion amount, the law attempts to limit the taxpayer’s lease payment deductions to the amount that would have been deductible under the limited depreciation rules had the taxpayer purchased the vehicle.

Read the full AICPA’s 2017 Vehicle Policy and Income Inclusion guide here.

While this isn't something inDinero is normally engaged to do, we’re happy to help incorporate this in your filings for an extra fee. Talk to your Controller or Accounting Specialist if you’d like some help or have any questions. If you’re working with a personal tax preparer that doesn’t already belong to the AICPA, you can even share this document with them.