Church Owned Vehicles

When a church owns the vehicle driven by the Pastor and the Pastor uses thevehicle for personal use, an amount must be added to his income.  Personal useis any use which is not church business.  Commuting is considered personal use.The Pastor must log his miles and provide the church with a statement showing thebusiness miles driven and the total miles driven.

Calculating Personal Use on an Employer Owned Vehicle

Subtract the pastor’s business miles from his total miles.  This gives you hispersonal miles.  Divide his personal miles by the total miles.  This give you thepercentage of personal use.Using the Annual Leave Value table below, multiple the percent of personal use bythe annual lease value (if the vehicle was not made available for the entire year, multiple by the fraction – the number of days available divided by 365).  Add this amount to the Pastor’s income on his W-2, block 1*.
*If the employer provides the gasoline then add 5½ cents for each personal mile.
*If the employee provides the gasoline then deduct 5½ cents for each business mile.

Annual Lease Value

Generally, you figure the annual lease value of an automobile as follows.

1)  Determine the fair market value (FMV) of the automobile on the first date it isavailable to any employee for personal use.

2)  Using the following Annual Leave Value Table, read down column 1 until you come to the dollar range within which the FMV of the automobile falls.  Then read across to column 2 to find the annual lease value.

Annual Lease Value Table
Annual Lease Automobile FMV Value
$ 0 to 999 600
1,,000 to 1,999 850
2,000 to 2,999 1100
3,000 to 3,999 1350
4,000 to 4,999 1600
5,000 to 5,999 1850
6,000 to 6,999 2100
7,000 to 7,999 2350
8,000 to 8,999 2600
9,000 to ,9999 2850
10,000 to 10,999 3100
11,000 to 11,999 3350
12,000 to 12,999 3600
13,000 to 13,999 3850
14,000 to 14,999 4100
15,000 to 15,999 4350
16,000 to 16,999 4600
17,000 to 17,999 4850
18,000 to 18,999 5100
19,000 to 1,9999 5350
20,000 to 20,999 5600
21,000 to 21,999 5850
22,000 to 22,999 6100
23,000 to 23,999 6350
24,000 to 24,999 6600
25,000 to 25,999 6850
26,000 to 26,999 7250
28,000 to 29,999 7750
30,000 to 31,999 8250
32,000 to 33,999 8750
34,000 to 35,999 9250
36,000 to 37,999 9750
38,000 to 39,999 10250
40,000 to 41,999 10750
42,000 to 43,999 11250
44,000 to 45,999 11750
46,000 to 47,999 12250
48,000 to 49,999 12750
50,000 to 51,999 13250
52,000 to 53,999 13750
54,000 to 55,999 14250
56,000 to 57,999 14750
58,000 to 5,9999 15250

For automobiles with a FMV of more than $59,999, the annual lease value equals
(.25 x the FMV of the automobile) + $500.

For more information refer to IRS Publication 15-B.