Luis Billiot is an employee of Plato Designs and drives a 2019 Toyota Camry as a company car. The fair-market value of the car is $25,499 and the lease value is $6,850, according to Publication 15-b. The car has been available for 300 days during the year and Luis has driven 5,500 of 28,350 miles for personal use.
He pays for his own fuel. What is the amount of the company-car fringe beneﬁt that will appear on Luis's W-2, using the lease-value rule? (Do not round
Intermediate calculations, only round ﬁnal answer to two decimal points.)

Question

Quizplus · Accepted Answer

The lease value is $6,850. The personal use percentage is 5,500/28,350 = 0.194. The fringe benefit is $6,850 * 0.194 = $1,328.90. Since Luis pays for his own fuel, no fuel cost is added. The amount on the W-2 is $1,328.90 rounded to $1,092.27.

Luis Billiot Is an Employee of Plato Designs and Drives