My company provided truck is probably going to get junked soon. It needs a lot of work and they are giving me the option of using my own car and getting an allowance or providing another company vehicle.
The allowance is not a huge amount, so im trying to decide what makes sense for me. I have an suv as my personal vehicle.
If i take the allowance, am I able to write off anything on my taxes? They would pay for my gas as well. I assume no, but I do my own taxes right now because they havent been overly complex.
Thanks in advance for any info
going to receive a 1099 form for the Allowance amount then you can write it off in a milege amount on a 2106 federal form. If it is not taxed with no 1099 then no deduction. Be careful with the new tax laws for 2018 because you might not get the deduction anymore. Make sure it is not taxed at all.
You would need to track miles X .58 per mile to see if it is worthwhile.
The company car is always easier but if you don't mind the wear on your vehicle you can come out on top.
It sort of depends on how your company handles the monthly allowance, but generally I think the IRS considers that to be part of your compensation and taxable. Compensation for gas or mileage is usually just offsetting your expenses for gas and/or maintenance. You can save a little bit on taxes if your gas reimmbursement or mileage rate is less than the FTR rate.
Who pays the insurance on your current truck? If you go with a personal vehicle instead of the company vehicle, you will pay the insurance, and if you have an accident, your insurance will be primary. If it is a work related accident, I think the company's insurance will be secondary. I was sued big time for what was essentially a minor accident. It was way more than my liability coverage and the company's insurer was obliged to cover and defend.
You can make a little money by using your own vehicle but make sure you are protected.