Vehicle allowance or company provided?

[cusportsman]

Company vehicle with logos, and fuel card. We can drive anywhere for personal use, but I am more selective since it is logo’d. Pay a reasonable fee every 2 week pay period for personal use. Report personal/business miles every month.

Not that I drive any different really than I would a personal truck, but you do feel like more of a target with company logos all over the truck.

Do not have a personal vehicle, take family trips in my wife’s Yukon most of the time, but could drive my truck if wanted.



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[ecu1984]

company car and a gas card and can have optional $75 monthly deduction if I want to drive it anywhere for personal use

or

use my vehicle and get .58 a mile and a $500/month car allowance. The mileage is not the honor system anymore either.
We use an app called "concur" when driving that logs the miles daily/

[FishSticker]

If you do any amount of significant driving, definitely let the company own your vehicle.

especially, after they changed the tax laws and do not allow for mileage deductions anymore if you are a W-2 employee.

[Simple Man]

Sounds like Jozie and I have about the same deal. I have had a company-provided vehicle since 1996 (same setup with 2 companies). All expenses paid and I can use the vehicle as my personal. It's a hell of a benefit - we estimate it at about $15k/year with the number of miles that I drive (around 50k). I just get dinged on my W-2 at the end of the year for the portion that represents my personal usage and I pay taxes on that amount.

I get a new vehicle of my choice (within a budget) when the owners think they are on the verge of spending more in maintenance than they see fit. For instance, my last vehicle was an '13 Explorer that I put 185,000mi on and there was a transmission replacement on the horizon. I went to a Colorado for my current rig. Will likely go full size truck on my next one.

The thought of having to deal with payment, insurance, taxes, gas, etc on a car turns my stomach. I've been spoiled that way for the past 23 years.

And no logos.

[Phone Man]

I prefer them have total control of vehicle. Repairs, insurance etc. I can pay for my own personal truck to do as I please and don't have to worry about keeping up with mileage of when I went on a work call or went to the lake. Paying mileage isn't enough to cover taxes, insurance wear and tear and Lord knows if something happens while on work related business I guarantee you will be left with the burden.

Edit this has been my experience with state vehicles anyway. Sounds like some of ya'll have some different deals and sounds pretty good. I have several buddies that have work vehicles and just keep an old beater 4x4 at home to hunt and such in.

[uga_dawg]

Company vehicle with logos, and fuel card. We can drive anywhere for personal use, but I am more selective since it is logo’d.

Reminds me of a great story I heard on a coworker. He was traveling to Boise and they used to let people drive the company van rather than use rental cars. I can't remember if it was a sex toy shop or strip club they had opened, but the local do gooders were outraged and were protesting in front of it.

The local 6 o clock news was doing a live on scene shot and here comes Jimmy pulling up in the company van. Parked right in front and walked in the front door.

[ecu1984]

The company vehicle outweighs the personal w/ car allowances all day long.
Between car payment/insurance/maintenance, property tax, etc...….I think its easily +10k a year beneficial

[Iefstath]

I get a monthly allowance, and I used to get to deduct mileage which is unfortunately no longer a thing.

Company also pays for a rental car and fuel, anytime I have to travel outside of two hours. Some weeks I'm in a rental 4 days a weeks, and some months i only drive 150 miles.

I drive my truck and figure it's pretty much a wash...definately not making any extra at the end of the year.

[jws]

I drive a company vehicle with a gas card and do whatever I want in it.

[SaltMuck]

I'm Gov't, with a choice of them buying a car, insurance, upkeep, blah blah or I can claim .58 mileage. I buy a $7k Civic every 5 years and take the $600 or so a month. For me, it pays for the car in 1 year and I end up pocketing a fair amount.

[willyworm]

I drive my own vehicle for company purposes. I cover all the maintenance, pay for all my gas, etc then Spectrum gives me a monthly reimbursement. It varies with the amount of miles I drive. I have to log every route every day via Concur, along with nay charges on the company card like taking a customer to lunch, etc. Having to do that is a complete pain in the rear. When I was working the Hilton Head/Bluffton and N. Chas/Summerville markets, that drive from Sumter would slam rack up some miles. I was getting monthly mileage reimbursements of $700+/month. Nowadays, since they shrank my territory keeping me Sumter, Florence, Hartsville, Darlington areas mileage reimbursements hover between the $200-$300 range.

[rp]

Allowance. I hate the fact that people target a vehicle with a logo, but it happens.

To me the the only advantage as a business owner is the tax break but I was once told “Don’t make business decisions for tax reasons.” Meaning that if a decision has tax implications as a bonus then it’s fine, but don’t do it simply for the tax reasons.

Tax incentives may help, but to do something for tax reasons usually means you have to spend money to get it. As posted above.

Example: You need equipment for business, you buy it. Sec 179 may help, depends on your tax circumstances. But do not buy something just to use Section 179. You are out far more money than 179 is going to save you.

Same for those Kidney Cars. You can likely sell a car for what they say it is worth. Example, sell a car for 2K, you MIGHT be able to get a deduction for $400 if you donated it instead, if you itemize. Maybe more, but not $2k. You might get more if you scrap it.

Back to original post, lots of my clients do well to pay themselves, or get paid, for actual mileage. Real simple. Keeps vehicles off of the books in most cases.

[ecu1984]

Tax incentives may help, but to do something for tax reasons usually means you have to spend money to get it. As posted above.

Example: You need equipment for business, you buy it. Sec 179 may help, depends on your tax circumstances. But do not buy something just to use Section 179. You are out far more money than 179 is going to save you.

Same for those Kidney Cars. You can likely sell a car for what they say it is worth. Example, sell a car for 2K, you MIGHT be able to get a deduction for $400 if you donated it instead, if you itemize. Maybe more, but not $2k. You might get more if you scrap it.

Back to original post, lots of my clients do well to pay themselves, or get paid, for actual mileage. Real simple. Keeps vehicles off of the books in most cases.

RP is the KRT of CPAing

[Chuck the Duck Slayer]

Company vehicle
Gas card
They cover all maintenance and taxes
rental vehicle if need be
Logo free
new vehicle every 3-3.5 years
We have to a few options to choose from and just recently we can now get 4wd

I drive it anywhere I want just report my personal miles and pay very little tax on those miles throughout the year.
I don't have a personal vehicle and we will take my truck on family trips on occasion, the wife's Tahoe is more comfortable though.

[Maggie Glover]

Personally would never want the responsibility of a company car. For you company truck for personal use guys: Can you transport firearms and ammo in them? How do you differentiate when you are working versus commuting?

All of these questions get asked in depositions everyday and not to mention alcohol. MG

[Chuck the Duck Slayer]

I'm allowed two drinks with supper when traveling out of town for work. If the wife and I go to dinner and I have more than two drinks she'll drive my company truck home. My wife is allowed to drive my company truck whether I'm in it or not, I'll just have to report those miles as personal but no big deal.

We are not allowed to haul personal trailers with company trucks but that's not to say I haven't loaded a four wheeler in the bed and rolled on, Not a word was said.

[buckshot1224]

Company vehicle with all expenses covered. Allowed to use for whatever. It is logo’d so I’m sensible with it......most of the time. I drive it everywhere, vacations, MS hunting, etc. I do let my immediate boss know on the long trips just Incase something happens but he doesn’t care. Report the allowable personal miles each year and I’m charged $75 every 2 weeks pre-tax but I get my money’s worth.

I like the set up myself. Wish I could pick the truck but it’s a crew cab 4wd so not too much to complain about.

I have a personal truck as well but I have to for the farm.


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[Timberman22]

I really like our companies 3rd party administrator (Motus) of our vehicles. Each employee gets to buy what they want and we get a fixed rate plus a lower mileage rate that fluctuates with gas prices. This system pays for your truck payment, gas, insurance, and taxes. We're responsible for maintenance but with the system in place we have to keep vehicles that are newer than 3 yo. It is a win win for me and it also covers 100% of my personal mileage which is not the intended use of the system. All of the employees prefer this system vs. the company vehicle route that they used for many years and also takes some liability away from the company from you having a couple drinks and driving home after a business function.

[KRT]

I pay for my vehicles, I do as I want with them. I pay maintenance, gas, taxes, etc and it’s not part of my salary.

[Palmetto Pride]

The liability associated with allowing cart Blanche personal use of a company vehicle would make our owners sphincter tighten from a liability reason