Publication 15b |
2000 Tax Year |
Commuting Rule
Under this rule, you determine the value of a vehicle you provide
to an employee for commuting use by multiplying each one-way commute
(that is, from home to work or from work to home) by $1.50. If more
than one employee commutes in the vehicle, this value applies to each
employee.
You can use the commuting rule if all the following requirements
are met.
- You provide the vehicle to an employee for use in your trade
or business and, for bona fide noncompensatory business reasons, you
require the employee to commute in the vehicle. You will be treated as
if you had met this requirement if the vehicle is generally used each
workday to carry at least three employees to and from work in an
employer-sponsored commuting pool.
- You establish a written policy under which you do not allow
the employee to use the vehicle for personal purposes, other than for
commuting or de minimis personal use (such as a stop for a personal
errand on the way between a business delivery and the employee's
home). Personal use of a vehicle is all use that is not for your trade
or business.
- The employee does not use the vehicle for personal purposes,
other than commuting and de minimis personal use.
- If this vehicle is an automobile (any 4-wheeled vehicle,
such as a car, pickup truck, or van), the employee who uses it for
commuting is not a control employee (defined later).
Vehicle.
For this rule, a vehicle is any motorized wheeled vehicle,
including an automobile, manufactured primarily for use on public
streets, roads, and highways.
Control employee.
A control employee for 2001 is generally any of the following
employees.
- A board- or shareholder-appointed, confirmed, or elected
officer whose pay is $75,000 or more.
- A director.
- An employee whose pay is $155,000 or more.
- An employee who owns a 1% or more equity, capital, or
profits interest in your business.
Highly compensated employee alternative.
Instead of using the preceding definition, you can choose to define
a control employee as any highly compensated employee. A highly
compensated employee for 2001 is an employee who meets either of the
following tests.
- The employee was a 5% owner at any time during the year or
the preceding year.
- The employee received more than $85,000 in pay for the
preceding year.
You can choose to ignore test (2) if the employee was not also
in the top 20% of employees when ranked by pay for the preceding year.
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