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Posted by Mark Bole on June 12, 2008, 10:51 am
liljacket wrote:
> I am a W2 employee (President of a small MFG company). I live 34
> miles from the factory. The company wants to get me an economical
> company car to drive to and from work as I currently own a gas guzzler
> and want to sell it.
> I don't understand the IRS regs concerning commuting. I have read the
> rules but still don't understand them.
> Question: If I have a legitimate company reason for going by a post
> office box everyday appro. 2 miles from my house can I use the company
> car(that I drove home the night before) and not be 1099d for the rest
> of the way to work/
> I probably am not scripting this clearly but you folks will probably
> understand what I am trying to achieve.
Yes, and so might the IRS! ;-)
Really, this is a tax question, you should try asking over in
misc.taxes.moderated. Plus, the issue needs to be sorted out by the
company, not the employee, as they will be reporting whatever fringe
benefit compensation comes into play, on a W-2, not a 1099.
Keep in mind:
* commuting is never deductible
* personal use of a company-provided vehicle is a taxable fringe benefit
* there is a whole menu of rules that can be followed to determine the
taxable benefit to the employee of an employer-provided vehicle (lease
value, cents-per-mile, commuting rule, general rule, etc), which can be
affected by whether you are required to use the vehicle, whether there
is any personal use besides just commuting, and whether you are a highly
compensated employee ("president" sounds like it might fit that
description).
* how have you been handling the stop at the post office with your
current vehicle (or are you saying that the requirement just happened to
spring up at the same time as your decision to sell your personal
vehicle?) Why does your factory have a post office box that is 32 miles
away from your principal place of business? Is this a commonly accepted
practice in your industry?
-Mark Bole
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