Write-off question . . .

[XMan]

My company has a company car program, for which we are charged a set amount each paycheck. We log personal and business miles through a fleet management program which calculates the taxable benefit of the personal/commute miles we're receiving to help us determine whether we'll need to pay taxes on the miles we're using.

Say, for instance, that the amount I've paid for use of the company car is $1600. But the personal usage of the vehicle only amounts to a taxable benefit of, say, $800. Can I write off the other $800 in some way? My company does not refund the money to us if we don't use all the mileage we're paying for.

 

[Ns1]

unreimbursed business expense

 

[CPA]

I'm not sure I understand what you mean by "charged a set amount each paycheck". Can you clarify?

 

[XMan]

Basically, it's explained to us that if we receive the vehicle for free, any usage for personal and commuting is considered a taxable benefit. They make a deduction from our paycheck based on our usage. The idea is to balance out what you're paying for the personal use based on how you actually use it. I picked the minimum amount allowed and I still didn't use all the miles I paid for.

In theory it sounds like a screwy deal, but I don't pay a dime for gas or maintenance. And if I want to drive to Florida in my company car, I can.

 

[CPA]

okay, like Ns1 said, the business portion is deductible as an itemized deduction (using the greater than 2% AGI rule).