Any know US tax laws?

[MikeC]

Here's the deal, a buddy got a promotion that includes a company vehicle that they say he can use for personal use. Does the IRS consider that taxable, as in a form of compensation?

 

[Halthron]

The short answer is yes and here's a decent explanation: https://www.wheels.com/driver/PersonalUse/FAQ.htm As with anything like this though, check with a tax advisor for any recent changes or special cases. One such special case would be if your buddy didn't commute, rather was on duty on leaving his home. Like with a cop. IRS commentary on fringe benefits can be found at http://www.irs.gov/publications/p535/ch02.html#d0e1451 Like with all things taxable, how the company claims it will be at the core of what's taxed and what isn't. This is why it's important to talk with a competent tax professional.

 

[mike_s]

Yes it's taxable. But differs by company how much they take out of your check for this.

I used to have a company vehicle and they didnt' take anything out of my check and didn't note it anywhere on any of my tax forms. It was like I didn't actually have one of their vehicles or at least they weren't reporting it to the government.


My wife works for a LARGE coporate company and has a company car. They take roughly $80 bucks per month out of her check to cover tax for "personal use of company vehicle". Some time in December they take out slightly more to make up whatever else is needed, but it's usually not more than $120 that month (with the $80 included).

In my opinion, I love her having a company car. They pay for all her gas, vehicle maintenance, tires, brakes, oil changes, insurance, etc. $80 bucks a month is CHEAP to pay for all that. They only thing they won't pay for is having it washed.... darn...

-mike