Mine is valued at $14,000 per year! I have had company cars since 1992. I can use it for vacation, lease, running errands. I am required to report my "personal" mileage at the end of the year. I definitely love having one vehicle to maintain in my driveway......and that 1999 Suburban 4X4 has 297,500 miles on it!
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Company vehical is PRICELESS to me. I get free gas, personal use (in the state of texas only) all mechanical work free and I get paid from my doorstep till I step back on it in the evening. CANT BEAT IT!!!!!!!!!!Comment
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Been with one the past 3 years. I have to report my personal miles at the first of the month. Nice to have. But I am waiting for the e-mail that says to turn the keys in. I filled up 4 times last week alone. Only twice this week so far.Comment
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I've never figured it, but my employer claims our cars equate to around $10,000 to $12,000 a year with unlimited personal use, free gas, free oil changes, tires, maint., etc... I keep expecting some sort of restrictions to be implemented with the soaring fuel prices. Can't really blame them if they do.Comment
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I too have been in company vehicles for some time and it is an added bonus to say the least. I have a F150 with the rear doors, but not the crew cab, that I drive everywhere I go for the most part. I am pretty good with numbers and I think the truck/maintenance/tires/insurance is in the $10K range, maybe a little over that number. I have one boss that stated that I could not haul a trailer or boat with it but my prior boss wrote me a letter stating otherwise. I can go 125 miles from home on personal trips without verifiying anything and haul who I want when I want with me.
The fuel is a whole different animal. I just did my expenses yesterday and I live about 6 miles from the office but drive all over the county each day. My fuel bill was $561 for April, $447 for March and $325 for February, which I get back of course.
We must input our personal miles into our system and we are taxed on them on a monthly basis. We do not pay for the miles, only the taxes on the "amount" the miles are worth in dollars.
So, pending the miles you drive and gas you consume, it would be anywhere from $1,000-$1,500 a month. We must put 125K miles on our truck or 4 years.
One thing no one has mentioned is the accident policy. I know that with my employer, if you have an "at fault" accident in the company vehicle within 90 days, you are terminated, after that for the next 90 days you would be put on probation for 180 days. In addition, if you are ever in an accident, you need to be prepared for drug and alcohol testing within the hour, no matter where you are at the time. In addition, all tickets or accidents at any time must be reported to your supervisor, even on personal time, vacation, etc.
As a note, I have driven my personal truck, a F350, 442 miles this year. I probably don't even need one, lol.Comment
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My company vehicle was valued at around $16,000 a few months ago. Who knows now that gas has risen a bit. Like Oscar I can use it for what I want, though I have to claim "personal miles" as well.
Having a Jeep CJ-7 to leave at the deer lease 6 hours away and take the company car is a wonderful thing!
It would take around a $10,000 to $15,000 raise for me to give it up.Comment
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Heed SaltwaterSlick's advise. I'm not an expert on IRS code, and not providing tax advise, but here some interesting links and reading.
Vehicle Provided by Your Employer
If your employer provides you with a car, you may be able to deduct the actual expenses of operating that car for business purposes. The amount you can deduct depends on the amount that your employer included in your income and the business and personal miles you drove during the year. You cannot use the standard mileage rate.
Value reported on Form W-2. Your employer can figure and report either the actual value of your personal use of the car or the value of the car as if you used it only for personal purposes (100% income inclusion). Your employer must separately state the amount if 100% of the annual lease value was included in your income. If you are unsure of the amount included in your Form W-2, ask your employer.
Full value included in your income. You can deduct the value of the business use of an employer-provided car if your employer reported 100% of the value of the car in your income. On your 2007 Form W-2, the amount of the value will be included in box 1, Wages, tips, other compensation, and box 12.
To claim your expenses, complete Part II, Sections A and C, of Form 2106. Enter your actual expenses on line 23 of Section C and include the entire value of the employer-provided car on line 25. Complete the rest of the form.
Less than full value included in your income. If less than the full annual lease value of the car was included on your Form W-2, this means that your Form W-2 only includes the value of your personal use of the car. Do not enter this value on your Form 2106; it is not deductible.
If you paid any actual costs (that your employer did not provide or reimburse you for) to operate the car, you can deduct the business portion of those costs. Examples of costs that you may have are gas, oil, and repairs. Complete Part II, Sections A and C, of Form 2106. Enter your actual costs on line 23 of Section C and leave line 25 blank. Complete the rest of the form.
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My company valued it at $10k/year when I got it and it was part of my compensation package(salary). But when I lost it, it mysteriously became a perk and they gave me a one time payment of $2k. I know I got screwed, and they know I think I got screwed, but funny how things change to the corporate advantage.
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If I drive to a job site from my house then it is personal miles, but if I drive the truck to the office(personal miles) and then drive to the job site then it is not personal miles. So I drive tot eh office (which is 2 miles away) every morning.Comment
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