Annual Lease Value Table

										         Annual
Automobile fair market value							     Lease Value   
$0        to     999 	 $   600
  1,000 to   1,999  	      850
  2,000 to   2,999  	   1,100
  3,000 to   3,999  	   1,350
  4,000 to   4,999  	   1,600
  5,000 to   5,999  	   1,850
  6,000 to   6,999  	   2,100
  7,000 to   7,999  	   2,350
  8,000 to   8,999  	   2,600
  9,000 to   9,999  	   2,850
10,000 to 10,999  	   3,100
11,000 to 11,999  	   3,350
12,000 to 12,999  	   3,600
13,000 to 13,999  	   3,850
14,000 to 14,999  	   4,100
15,000 to 15,999  	   4,350
16,000 to 16,999  	   4,600
17,000 to 17,999  	   4,850
18,000 to 18,999  	   5,100
19,000 to 19,999  	   5,350
20,000 to 20,999  	   5,600
21,000 to 21,999  	   5,850
22,000 to 22,999  	   6,100
23,000 to 23,999  	   6,350
24,000 to 24,999   	   6,600
25,000 to 25,999  	   6,850
26,000 to 27,999  	   7,250
28,000 to 29,999  	   7,750
30,000 to 31,999  	   8,250
32,000 to 33,999  	   8,750
34,000 to 35,999  	   9,250
36,000 to 37,999  	   9,750
38,000 to 39,999  	 10,250
40,000 to 41,999  	 10,750
42,000 to 43,999  	 11,250
44,000 to 45,999  	 11,750
46,000 to 47,999  	 12,250
48,000 to 49,999  	 12,750
50,000 to 51,999  	 13,250
52,000 to 53,999  	 13,750
54,000 to 55,999  	 14,250
56,000 to 57,999  	 14,750
58,000 to 59,999  	 15,250

For vehicles having a fair market value in excess of $59,999, the annual lease value is equal to: (.25 x the fair market value of the car) + $500.

Example

Barbara Smith’s employer provided a car for her personal use during 2013.  The car’s fair market value on January 1, 2013, was $10,500.  The annual lease value for the $10,000 to $10,999 range, taken from the IRS table, is $3,100.  Under this method, her employer is required to include $3,100 in Smith’s gross income for 2013 for her personal use of the car.