Discussion:Employer Vehicle
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Discussion Forum Index --> Advanced Tax Questions --> Employer Vehicle
Discussion Forum Index --> Tax Questions --> Employer Vehicle
| 3 March 2008 | |
| Situation in which an employer owns a vehicle and provides it for the use of employees. The company uses the auto lease value method to compute the personal use amount for the employees to report on their W-2 forms.
My questions relate to the employer - does the company expense all items related to the vehicle usage and depreciate at 100%, assuming that the ALV calculation takes care of the personal use portion by allocating it to compensation? Any guidance/clarification would be most helpful. Thanks! | |
| 3 March 2008 | |
| That's correct. 100% expenses are deductible. And credit the company's auto expense, or credit other income, with the personal use amounts, to offset the compensation debits. | |
| 3 March 2008 | |
| RJM,
That's what I thought, but was getting conflicting views in the office, here, so thought I'd ask the Web. Thanks and "enjoy" the rest of busy season. | |
Michaelstar (talk|edits) said: | 3 March 2008 |
| You might also want to look at Pub 15-B, pages 20-23 to read and print for your files on this subject. The rules to follow are spelled out very clearly here. | |
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