Discussion:THE STANDARD MILEAGE RATE OF 48.5 CENTS

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Discussion Forum Index --> Tax Questions --> THE STANDARD MILEAGE RATE OF 48.5 CENTS


INABLUR4 (talk|edits) said:

13 August 2007
IF THE EMPLOYER SUPPLIES THE GASOLINE IS THAT RATE REDUCED BY 5 CENTS PER MILE?????

Death&Taxes (talk|edits) said:

13 August 2007
For whom? The employer or the employee? I believe the latter would treat the gasoline reimbursement as just that, a reimbursement against the mileage expense, not at 5 cents a mile but at the actual dollars reimbursed.

Taxref (talk|edits) said:

13 August 2007
I agree with D&T's answer. The employer deducts as auto expense whatever mileage rate he pays to the employee, assuming there is an accountable plan in place. More twists take place if the employer reimburses at more than the federal rate, but that isn't the case here. For the employee, on Schedule A he claims the standard mileage rate minus whatever dollar amounts are paid by the employer to him as reimbursement.

1040man (talk|edits) said:

13 August 2007
Plesae explain how "EMPLOYER SUPPLIES THE GASOLINE"?

Death&Taxes (talk|edits) said:

13 August 2007
I must not have been thinking clearly: if the auto belongs to the employee, the employer cannot deduct mileage because of lack of ownership.

Kevinh5 (talk|edits) said:

13 August 2007
let's say the taxpayer is an employee (F 2106) and uses the company credit card to charge gas. Your initial response would be correct.

Death&Taxes (talk|edits) said:

13 August 2007
But sometimes the employer has a gas pump and we get into the complication of personal usage of the gasoline, plus of course, the record keeping the employer must provide. For some reason, I have the suspicion that is the case here.

LJACPA (talk|edits) said:

13 August 2007
Are you thinking about the 5.5 cents that's added in figuring the amount to include in employee's wages?

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