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Started By
Message
re: Truck allowance vs company vehicle
Posted on 12/29/13 at 10:28 pm to TigerTatorTots
Posted on 12/29/13 at 10:28 pm to TigerTatorTots
quote:
Interesting...I get a fixed reimbursement and variable mileage reimbursement and its all non taxed
I think just because your employer does not withhold taxes does not mean you are off the hook for paying taxes on this as income. They should probably send u a 1099 which then you have to claim as income. I could be wrong, and would love for a tax pro to chime in.
0
Posted on 12/30/13 at 9:42 pm to BearCrocs
quote:
BearCrocs
Posted on 12/30/13 at 9:56 pm to BearCrocs
quote:
BearCrocs
I'm in the same situation and took the company vehicle & have regretted it ever since for a couple of reasons:
1)I would have already paid off fairly decent used truck at this point & the allowance would be in my pocket for a new one.
2)If a layoff happens I'm shite out of luck. Try & get a car loan without a job.
3)Cosmetic repairs: Explain to an unforgiving boss why you need minor repairs for dents etc.
I plan on approaching my company about purchasing the company vehicle & getting on the allowance. I won't make this mistake again.
Posted on 12/31/13 at 8:39 am to 4LSU2
quote:
My vehicle allowance is tax exempt. I too have the same option. I get $1,000 a month on the first of each month. I enjoy a beer or two on my way home from work to jeopardize this in a company vehicle. I purchased a new truck on 12-31-12 and put 25k Miles on it as of today. My note is $320 a month, insurance is $99 and I spend around $300/ month in gas. I'm pondering trading my truck in and getting a new one this week. 2013 Double Cab Tacoma is my existing truck. I can make money off of trading it in, so this scenario works for me.
This is my exact situation, except I don't drink on the way home.
The allowance is kind of weird come tax time.
This is the LINK to IRS which discusses reimbursements.
This post was edited on 12/31/13 at 8:40 am
Posted on 12/31/13 at 9:13 am to HamCandy
im still wondering how you figure your vehicle allowance is tax exempt.
Posted on 12/31/13 at 10:35 am to diat150
I don't know if "tax exempt" is the right terminology for it, but lets assume you work for a construction company and the job you are running runs out of lumber. You don't have a company card and you run to the store and buy the lumber with your own money $100. Well when your employer pays that money back to you ($100) you do not pay the taxes on is because its a reimbursement.
Your vehicle allowance works the same way, assuming you account for those expenses. I was paid $4,800.00 last year in vehicle allowance, and I kept a mileage book proving that I used roughly $4,400.00 and pocketed the $400.00. So I was able to write the 4,400 off as a deduct.
I'm no tax expert, in fact I'm an idiot about it. That is how it was explained to me so I did my best to reiterate.
Your vehicle allowance works the same way, assuming you account for those expenses. I was paid $4,800.00 last year in vehicle allowance, and I kept a mileage book proving that I used roughly $4,400.00 and pocketed the $400.00. So I was able to write the 4,400 off as a deduct.
I'm no tax expert, in fact I'm an idiot about it. That is how it was explained to me so I did my best to reiterate.
Posted on 12/31/13 at 11:54 am to HamCandy
quote:
I don't know if "tax exempt" is the right terminology for it, but lets assume you work for a construction company and the job you are running runs out of lumber. You don't have a company card and you run to the store and buy the lumber with your own money $100. Well when your employer pays that money back to you ($100) you do not pay the taxes on is because its a reimbursement.
Your vehicle allowance works the same way, assuming you account for those expenses. I was paid $4,800.00 last year in vehicle allowance, and I kept a mileage book proving that I used roughly $4,400.00 and pocketed the $400.00. So I was able to write the 4,400 off as a deduct.
I'm no tax expert, in fact I'm an idiot about it. That is how it was explained to me so I did my best to reiterate.
Do the same thing. If mileage during the year equates to what I am receiving in allowance, it is tax exempt. If not, I pay taxes on the difference.
Posted on 12/31/13 at 12:26 pm to MandevilleLSUTiger
are they paying your fuel also?
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