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Your client is concerned about the tax implications of his limited personal use of a...

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Accounting

Your client is concerned about the tax implications of his limited personal use of a company-provided car. Which one of the following statements would correctly advise him about such use?

Such use is considered "de minimis" by the IRS, so its value is excludible from his income.

His personal use of the company car in excess of 1,000 miles per year is taxable at an annually specified amount per mile.

He will have to include in income the value of his personal use based on an IRS formula.

Such personal use is not taxable since it is exempted under Code Section 401.

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