MotoHouston.com MotoHouston.com
Register Members List Member Map Media Calendar Garage Forum Home Mark Forums Read

Go Back   MotoHouston.com > Off Topic (everything else) > Off Topic
Forgot info?

Welcome to MotoHouston.com! You are currently viewing our forums as a guest which gives you limited access to the community. By joining our free community you will have access to great discounts from our sponsors, the ability to post topics, communicate privately with other members, respond to polls, upload content, free email, classifieds, and access many other special features. Registration is fast, simple and absolutely free, join our community!

Register Today!

If you have any problems with the registration process or your account login, please contact us.


Like us on Facebook! Regular shirt GIVEAWAYS and more

Advertisement

Reply
Share This Thread: 
Subscribe to this Thread Thread Tools
Old 06-30-2009, 09:52 PM   #1
navigator
Senior Citizen
 
navigator's Avatar
 
Join Date: Jul 2007
Location: Sargent , Texas
Feedback Rating: (1)
Posts: 1,112

Experience: 10+ years
Trackdays: 10+

Bike(s):
'06 Buell XB12X









Income tax question.

What are the ramifications of a vehicle allowance? I have always had a company provided vehicle but with my new job will be getting a fairly lucrative vehicle allowance with no strings attached by the company. I can drive what I like as long as I have it available for use to meet with clients or for ground travel. I will also be reimbursed for mileage as it is turned in on my expense reports.

What, if anything, am I allowed to write off?
__________________
POLITICAL CORRECTNESS, is a doctrine, fostered by a delusional, illogical minority, and rabidly promoted by an unscrupulous mainstream media, which holds forth the proposition that it is entirely possible to pick up a by the clean end.
navigator is offline   Reply With Quote
Similar Topics
Thread Thread Starter Forum Replies Last Post
income tax question rick Off Topic 16 01-26-2010 08:09 AM
Earned Income Tax Credit (EITC) Charliebrown Off Topic 17 02-02-2009 03:27 PM
spending your income tax refund? tonyt915 Off Topic 64 01-24-2009 01:58 AM
Income Tax return cashtown Off Topic 95 01-24-2008 11:00 PM
Income Tax ratmzapa Off Topic 27 02-22-2006 10:59 PM
Advertisement
Old 06-30-2009, 11:44 PM   #2
ducoop
Senior Member
 
ducoop's Avatar
 
Join Date: Jul 2008
Feedback Rating: (0)
Posts: 1,038

Experience: 1 year

Bike(s):
2003 Z1000 (Sold)









You could claim your business mileage as a business expense but then you would have to take out all of your reimbursements from this claim. Last year for me it was an even wash.

Hopefully I explained this right.
ducoop is offline   Reply With Quote
Old 07-01-2009, 08:50 AM   #3
Reformed Squid
Senior Member
 
Join Date: Jul 2008
Feedback Rating: (0)
Posts: 248












In my last four jobs, I've dealt with vehicle reimbursement. Basically it's going to depend upon how they pay you the reimbursement. If they give you the reimbursement in a separate check and report it as vehicle reimbursement in one of the boxes on your W2 then you can't really deduct anything, however, if they just add the reimbursement to one of your regular paychecks and and then your paycheck tax with holdings are based on this higher total (regular pay plus reimbursement) the reimbursement is then considered additional regular pay and you are paying tax on it. Your employer can call it whatever they like, but if it is taxed with your regular pay, then you can go ahead with doing the full vehicle deduction, provided you meet use criteria.

Basically, you have to use your vehicle for over 50% business use in order to qualify for vehicle deductions. Also, the IRS always asks if you have access to another vehicle for use during nonbusiness hours. Always answer yes or else you'll attract an audit flag. Your motorcycle does count as an additional vehicle.

-Remember to keep accurate mileage logs
-Can't deduct mileage to and from the office
-If going directly from home to a customer's location and you have a local office, only the mileage from your office to the customer's location is counted, not from your home.
-keep all gas and maintenance receipts as this is deductible as well, even car washes can be deducted.
-you'll be able to depreciate your vehicle, however, when you sell it, you may be subject to recapture issues, e.g. did you sell it for more than the depreciated value...if so Uncle Sam wants some of that profit.
Reformed Squid is offline   Reply With Quote
Old 07-01-2009, 09:03 AM   #4
Reformed Squid
Senior Member
 
Join Date: Jul 2008
Feedback Rating: (0)
Posts: 248












Ran out of time editing my post. Here's how my last employer paid us our reimbursement. On the second paycheck of each month they added an additional $450 to our normal paycheck amount. My payroll taxes where then based upon this higher amount (normal pay + reimbursement), thus to the government it is just seen as income. Like I said above, your employer can call it whatever they want, but if it's taxed as income then that's what it is. If they don't do it this way then more than likely there's a good chance that it'll appear on your W2 as expense reimbursement.

It's kind of double dipping, but my accountant said it was kosher and my wife the tax attorney allowed me to do it which says a lot as it seems I married one of the only honest attorneys around.
Reformed Squid is offline   Reply With Quote
Old 07-01-2009, 10:02 AM   #5
navigator
Senior Citizen
 
navigator's Avatar
 
Join Date: Jul 2007
Location: Sargent , Texas
Feedback Rating: (1)
Posts: 1,112

Experience: 10+ years
Trackdays: 10+

Bike(s):
'06 Buell XB12X









Thanks for the information! I'm told that the allowance will be added to each paycheck and taxed accordingly. I will start keeping records.

I may also go buy myself a new vehicle.
__________________
POLITICAL CORRECTNESS, is a doctrine, fostered by a delusional, illogical minority, and rabidly promoted by an unscrupulous mainstream media, which holds forth the proposition that it is entirely possible to pick up a by the clean end.
navigator is offline   Reply With Quote
Reply


Thread Tools

Advertisement


All times are GMT -5. The time now is 04:34 PM.


MotoHouston.com is not responsible for the content posted by users.
Privacy Policy