General Valuation Rule You generally must include in an employee's wages the amount bywhich the cheap hotels in Taastrupfair market value of a fringe benefit is morethan the sum of the following amounts. Any amount the employee paid for the benefit. Any amount the law excludes from income. However, you and the employee may use special rules to valuecertain fringe benefits. (See Special Valuation Rules,later.) If the law excludes a fringe benefit cost from grossincome, do not include in the employee's wages the difference betweenthe fair market value and the excludable cost of that fringe benefit.If the law excludes a limited amount of the cost, however, include thefair market value of the fringe benefit that is due to any excesscost. Fair market value (FMV).In general, you determine the FMV of a fringe benefit on the basisof all the facts and circumstances. The FMV of a fringe benefit is theamount the employee would have to pay a third party in an arm's-lengthtransaction to buy or lease the particular fringe benefit. Neither the amount the employee considers to be the value of thefringe benefit nor the cost you incur to provide the benefitdetermines its FMV. Employer-provided vehicles.In general, the value of an employer-provided vehicle is the amountthe employee would have to pay a third party to lease the same or asimilar vehicle on the same or comparable terms in the same geographicarea where the employee uses the vehicle. A comparable lease termwould be the amount of time the vehicle is available for theemployee's use, such as a 1-year period. Do not determine the value by multiplying a cents-per-mile ratetimes the number of miles driven unless the employee can prove thevehicle could have been leased on a cents-per-mile basis. (However,see Vehicle Cents-Per-Mile Rule, later.)