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Anyone in sales and have a car allowance/gas card?
Posted on 2/21/13 at 1:08 pm
Posted on 2/21/13 at 1:08 pm
Situation is that I get a generous car allowance and a corporate gas card that I can use as I travel.
Question is can I also keep a mileage log and turn it in for taxes?
I've been given 2 answers:
1. You can't b/c you are getting a car allowance and your gas is free.
2. You can b/c your car allowance is taxed, so it's taxable income and the gas card part is irrelevent to the question.
Which answer is correct?
Thanks a lot!
Question is can I also keep a mileage log and turn it in for taxes?
I've been given 2 answers:
1. You can't b/c you are getting a car allowance and your gas is free.
2. You can b/c your car allowance is taxed, so it's taxable income and the gas card part is irrelevent to the question.
Which answer is correct?
Thanks a lot!
Posted on 2/21/13 at 1:16 pm to kbro
Is the car allowance and corporate gas card used solely for business travel or do you use it when you're driving around town or to go on vacation?
Posted on 2/21/13 at 1:24 pm to iAmBatman
The car is used for personal as well on the weekends and the gas card is primarily for business, but if I fill up on a Friday and then head to the mountains on Saturday it's personal as well.
Unless I travel outside my territory (parts of 3 states) or I'm on vacation I only use that gas card.
My wife has an SUV and we drive it a good amount on weekends or if we're going on a trip since I drive a sedan.
Unless I travel outside my territory (parts of 3 states) or I'm on vacation I only use that gas card.
My wife has an SUV and we drive it a good amount on weekends or if we're going on a trip since I drive a sedan.
Posted on 2/21/13 at 1:24 pm to kbro
If I were to do a mileage log, but back out personal miles is that legit?
Posted on 2/21/13 at 1:32 pm to kbro
If you're getting a gas card that your company pays for, I wouldn't even worry about it.
Posted on 2/21/13 at 1:36 pm to kbro
you're not allowed to deduct business mileage that you are reimbursed for (or given a gas card for).
Example:
I drive 250 miles a month for business purposes that are not reimbursed by my employer. I would keep a log of those miles and claim them as an unreimbursed expense come tax time.
Example 2:
I drive 250 miles a month for business purposes but I get a corporate gas card to pay for the gas then I am not allowed to claim the mileage as a deduction.
You said you get a car allowance and a gas card? I'm assuming that the car allowance is a cash payment you get and the gas card just pays for the gas you put in every time you fill up.
Example:
I drive 250 miles a month for business purposes that are not reimbursed by my employer. I would keep a log of those miles and claim them as an unreimbursed expense come tax time.
Example 2:
I drive 250 miles a month for business purposes but I get a corporate gas card to pay for the gas then I am not allowed to claim the mileage as a deduction.
You said you get a car allowance and a gas card? I'm assuming that the car allowance is a cash payment you get and the gas card just pays for the gas you put in every time you fill up.
This post was edited on 2/21/13 at 1:37 pm
Posted on 2/21/13 at 1:38 pm to kbro
quote:
2. You can b/c your car allowance is taxed, so it's taxable income and the gas card part is irrelevent to the question.
This would make sense if you are driving your own car for business purposes and depreciating the vehicle's value. But I'm not sure about this, I don't have this problem, unfortunately. I do love my mileage deduction ever year though, saves my arse from the bloodsucking dickbags at the IRS.
Posted on 2/21/13 at 1:45 pm to kbro
You need to do both. You need to pay taxes or take a deduction based on if your reimbursement (and gas money) is more or less than the mileage would come out to be. Instead of mileage you can do actual expenses including depreciation. I think....
Just reread the OP. IF you are paying taxes on the car allowance, you absolutely need to turn in your mileage and any other expenses you incur while providing a vehicle to your employer. Most vehicle allowances are not taxed though because they are seen as a reimbursement.
Just reread the OP. IF you are paying taxes on the car allowance, you absolutely need to turn in your mileage and any other expenses you incur while providing a vehicle to your employer. Most vehicle allowances are not taxed though because they are seen as a reimbursement.
This post was edited on 2/21/13 at 2:44 pm
Posted on 2/21/13 at 2:04 pm to skidry
Any money received as a reimbursement for a personal expense for corporate purposes is not taxed.
Posted on 2/21/13 at 2:07 pm to kbro
I get a vehicle allowance, and a 1099 misc (rental income at he end of the year) and i get a fuel card
i claim the vehicle depreciation, repairs/maintenance, and the extra insurance i have to carry (employer requires 100/300/100)
i do not claim millage because i get gas paid
i claim the vehicle depreciation, repairs/maintenance, and the extra insurance i have to carry (employer requires 100/300/100)
i do not claim millage because i get gas paid
Posted on 2/21/13 at 2:40 pm to iAmBatman
quote:
as a reimbursement
This is the key word here. If audited, you need to be prepared to show that you actually incurred costs equal to or exceeding what you received. Any money above those costs are taxable.
For example, your employer can't pay you minimum wage and then call $200K your vehicle allowance. Well, they can, but you will be in serious trouble with the IRS eventually.
This post was edited on 2/21/13 at 2:45 pm
Posted on 2/21/13 at 3:09 pm to skidry
Thanks for all of the responses. I'm still not positive I can submit the mileage log but here's the reason I'm asking.
My accountant has told me in the past that I'm not able to get reimbursed for mileage since I have the car allowance/gas card.
My coworker says he's been submitting a mileage log every year and that my accountant is an incompetent dickbag.
I put about 45k per year on my car and probably 70-75% is for business.
My accountant has told me in the past that I'm not able to get reimbursed for mileage since I have the car allowance/gas card.
My coworker says he's been submitting a mileage log every year and that my accountant is an incompetent dickbag.
I put about 45k per year on my car and probably 70-75% is for business.
Posted on 2/21/13 at 3:35 pm to kbro
quote:
My accountant has told me in the past that I'm not able to get reimbursed for mileage since I have the car allowance/gas card.
I'd go with what the professional says
quote:
My coworker says he's been submitting a mileage log every year and that my accountant is an incompetent dickbag.
Nothing is stopping your friend from doing that but he may be fricked if he gets audited. Also, some accountants aren't as ethical as others so he may just be going to an accountant that does care.
If your accountant is a licensed CPA, then I seriously doubt he's an incompetent dickbag, but hey, I have met a few
This post was edited on 2/21/13 at 3:36 pm
Posted on 2/21/13 at 4:26 pm to kbro
I am a CPA, so I will throw this out there. Take it FWIW.
It sounds like you are getting 2 separate payments.
One in the form of a car allowance. I don't know the stipulations on what exactly this is - but this is probably taxable income. Like getting a bonus.
Two is a Corporate Gas Card, which sounds like it is directly paying for your gas only. The IRS allows you a standard mileage deduction of 55.5 cents per mile in 2012. My guess is that if you keep a log of your miles driven for work and the amount of money you charged to the Corporate Gas Card you should be able to come up with how many cents per mile the gas card paid for. You should be able to deduct the difference between 55.5 cents per mile and the amount that you just calculated as being covered by the Corporate Gas Card, as long as the unreimbursed portion is greater than 2% of your AGI and you itemize.
It sounds like you are getting 2 separate payments.
One in the form of a car allowance. I don't know the stipulations on what exactly this is - but this is probably taxable income. Like getting a bonus.
Two is a Corporate Gas Card, which sounds like it is directly paying for your gas only. The IRS allows you a standard mileage deduction of 55.5 cents per mile in 2012. My guess is that if you keep a log of your miles driven for work and the amount of money you charged to the Corporate Gas Card you should be able to come up with how many cents per mile the gas card paid for. You should be able to deduct the difference between 55.5 cents per mile and the amount that you just calculated as being covered by the Corporate Gas Card, as long as the unreimbursed portion is greater than 2% of your AGI and you itemize.
Posted on 2/23/13 at 10:12 am to PurpleAndGold86
quote:
PurpleAndGold86
Thanks!!
Posted on 2/23/13 at 5:20 pm to kbro
Can not do both I had a coworker busted at an audit.
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