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Company car or no company car, help me pick a plan
Options
HotRod53
Posts: 1 Newbie
in Cutting tax
The last 4.5 years I have been providing my own work vehicle, my recent reimbursement was a taxed $300/month plus .19/mile, distance from home to the office is unchargable. I currently drive just a hair over 15,000 miles/year strictly for buisness. I had to provide all my own maintenance ect and I was unable to claim any unreimbursed mileage because I didn't have enough deductions to claim and use the long form. Here going into the 5th year, my vehicle has 152,000 miles on it and I am being offered 3 options:
option 1, stay on the same plan but once I move to a Company vehicle, I cannot never go back. Current reimbursement is a taxed $300/month plus .23/mile
Option 2, a company truck free of charge and no personal miles. I MUST drive 15,000 per year or I have to reimburse the company the going rate/mile for every mile UNDER 15,000. The current rate is about 52 cents/mile. If I only drive 14,000, I would owe more than $500 for miles that I never drove!
Option 3: same as option 2 except I have $220/month deducted from my pay and I get personal miles equal to some number of miles equivilent to the $220. If I go under, I believe they just keep the money, if I go over, I have to reimburse them so much per mile. I'm not sure if the personal miles are averaged over the year or assessed to be above or below every month.
Concerns: (1) As of now I do not know how many personal miles the $220 buys. (2) I am also concerned that with my changing position, my mileage may possible dip below 15,000, I would have to watch. (3) The other thought is to stay in my truck until it dies and just hang on to it. Now that it's paid for, maybe its worth running it into the ground (4) I would assume that as the price of fuel goes up, my $220 would change too.
Your input would be helpful!
option 1, stay on the same plan but once I move to a Company vehicle, I cannot never go back. Current reimbursement is a taxed $300/month plus .23/mile
Option 2, a company truck free of charge and no personal miles. I MUST drive 15,000 per year or I have to reimburse the company the going rate/mile for every mile UNDER 15,000. The current rate is about 52 cents/mile. If I only drive 14,000, I would owe more than $500 for miles that I never drove!
Option 3: same as option 2 except I have $220/month deducted from my pay and I get personal miles equal to some number of miles equivilent to the $220. If I go under, I believe they just keep the money, if I go over, I have to reimburse them so much per mile. I'm not sure if the personal miles are averaged over the year or assessed to be above or below every month.
Concerns: (1) As of now I do not know how many personal miles the $220 buys. (2) I am also concerned that with my changing position, my mileage may possible dip below 15,000, I would have to watch. (3) The other thought is to stay in my truck until it dies and just hang on to it. Now that it's paid for, maybe its worth running it into the ground (4) I would assume that as the price of fuel goes up, my $220 would change too.
Your input would be helpful!
0
Comments
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First question - why are you quoting dollars. Are you in the UK ?0
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This is a UK-based website. We cannot possibly provide constructive advice on a USA company vehicle question.British Ex-pat in British Columbia!0
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