Company car

[Tirefryr 1,742]

Can anyone explain this to me? I have been offered a company car, but I have to report personal use mileage every month and was told it is taxable. Google does me know help, and nobody can tell me how much the tax is.

Any help is appreciated!

[johnecon2001 82]

maybe they ment they get that back? 48 1/2 cents per mile can add up. Could also be a separate state thing other than Federal.

[johnecon2001 82]

Check this out too http://www.google.com/search?q=Indiana+mil...lient=firefox-a

[Tirefryr 1,742]

Thanks John, but that didn't help. As it stands now, I am reimbursed for my fuel through mileage at the federal minimum. I do not have to pay taxes on this money. Now, if I were to use the company vehicle, I would no longer get the fuel reimbursement as I will be issued a fuel card, but I will be held liable to report any personal miles and they are taxed to my knowledge. At what rate and how many miles I cannot seem to find. I was hoping we have some accountants in here who may know.

[///M5 2,833]

Give me a shout as there are a ton of variables, I'd be glad to walk you through it and how to take advantage of it.

Generically the mileage that you drive personally is considered income and you have to pay taxes on it. There are ways to minimize this of course and one is to have a second car. Lots of loopholes and ways to save money depending on the scenario, but I think you should still have my phone number.

[Tmax98 3]

of course sean knows the loop holes lol

[KU40 173]

yeah I was going to say that I figure it's counted as income too and just used income tax. basically lumped in with your income, although may be on a different line on your W2.

[Godsmack 360]

Good lookin out Sean..................my loopsholes are "pop's owns the business"

J

[Tirefryr 1,742]

Supposedly this is to be laid out to me in detail upon signing the lease papers, so if I need anything after that, I'll give you a call Sean. Thank you all!

[///M5 2,833]

Do you have to take the lease? Regularly a cash or per mile option is better for you. Of course if you are required then there is no alternative.

[Tirefryr 1,742]

I don't have to take the lease, but it's the best option for me. Currently I am getting mileage, but it's not worth it with gas prices going up and the wear and tear on my car. Plus my insurance went up, so. . .

I need a new vehicle anyways and this saves me from having to sell the Cobra. Once I cancel the insurance on my other car and factor in the money I've been spending on extra fuel and maintenance, I'll only be spending $50/month for a brand new vehicle that I won't have to buy any fuel for, won't have to insure, and won't have to maintain.

If I were to buy a new vehicle myself, I'd be out the Cobra, payments would be there still, and I'd have to insure it, cover a small portion of the fuel expense and maintain it, so I figure I'm coming out ahead.

[Aaron Clinton 2,372]

Damn, I wish I had that deal.

[///M5 2,833]

It definitely depends on the number of miles you put on and how the pay for your current car.

[mrray13 30]

oh, and current mileage for teh fed goverment is 50.5 cents. it was 48.5 last year.

when my wife had a company car, she had to pay taxes on it every year. averaged out to about $700. however, her employer would cover a majority of it, amounting to $250 or so being applied to our actual tax return.

wheeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee