Chapter 3
Fringe Benefit Valuation Rules

This section discusses the rules you must use to determine the value of a fringe benefit you provide to an employee. You must determine the value of any benefit you cannot exclude under the rules in section 2 or for which the amount you can exclude is limited. See Including taxable benefits in pay under Are Fringe Benefits Taxable? in section 1.

In most cases, you must use the general valuation rule to value a fringe benefit. However, you may be able to use a special valuation rule to determine the value of certain benefits.

This section does not discuss the special valuation rule used to value meals provided at an employer-operated eating facility for employees. These rules are discussed in section 1.61-21(j) of the regulations. This section also does not discuss the special valuation rules used to value the use of aircraft. These rules are discussed in sections 1.61-21(g) and (h) of the regulations.

This section discusses the general valuation rule and the following special valuation rules for employee transportation benefits.

• Cents-per-mile rule
• Commuting rule
• Lease value rule
• Unsafe conditions commuting rule

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