SECTION 4. SIMPLIFIED METHOD
Internal Revenue Bulletin 2001-51 · 2026-10-03 edition · updated 2026-10-04 · United States
FOR THE FULL EXCLUSION OF QUALIFIED AUTOMOBILE DEMONSTRATION USE
Q–11. What are the requirements under this revenue procedure for the Sim- plified Method for Full Exclusion of Qualified Automobile Demonstration use?
Q–12. What is a qualified written policy for purposes of the full exclusion?
Q–13. When may the employer reason- ably believe that the full-time automobile salesperson complies with the written policy?
Q–14. What is the sales area of an automobile dealer?
Q–15. When is the personal use of the demonstration automobile limited for purposes of the full exclusion?
Q–16. How does an employer deter- mine the total mileage that a demonstra- tion automobile is used outside of normal working hours?
Q–17. What is a reasonable system for recording out and in mileage?
Q–18. What is the applicable period for determining whether the average 10 miles per day is exceeded?
Q–19. What is commuting mileage? Q–20. How does an employer deter- mine the commuting mileage for a full- time salesperson?
Q–21. Is commuting mileage limited to the most direct route between the employ- ee’s home and the sales office?
Q–22. How does an employer using the full exclusion method calculate per- sonal use?
Q–23. What records must an employer maintain to satisfy the requirements for the full exclusion?
Q–24. What records must an employee maintain to satisfy the requirements for the full exclusion?
Q–25. What are the tax consequences if one or more employees fail to satisfy the limited personal use requirement?
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