re: Company Vehicle : Do my employees buy gas or do I?

You may even want to go a different route. The company i work for gives a monthly vehicle allowance ($500 in my case) and a fuel card. I end up getting a "rental income" form at the end of the year for the vehicle.

The way it was explained by my boss, the rental of the vehicle is taking as an over head cost and goes against his profit and what is taxed. But, if he were to purchase the vehicle and then let me use it, it is considered an asset and he is taxed on profit of the company before he buys the vehicles.

So, for example he can not write off the $20k purchase and is taxed on that money as profit. but doing the vehicle allowance method he can write off the costs then pas taxes on the after effect,