Warning

 

Close

Confirm Action

Are you sure you wish to do this?

Confirm Cancel
BCM
User Panel

Site Notices
Posted: 9/8/2017 12:34:45 PM EDT
I have the opportunity to have my employer provide a stipend for using a personal vehicle for work.  It will probably be a 60% work, 40% personal use ratio. What does that do to me tax-wise?

I assume that it wipes the "tax-relief" away and I get hit with the full percentage ($5/100 in my county).  Is that correct?

Just asking so I can accurately negotiate the stipend.
Link Posted: 9/8/2017 1:09:03 PM EDT
[#1]
As you saw, here is the rule:

f you can answer YES to any of the following questions, your motor vehicle is considered by State Law to have a business use and does not qualify for Car Tax Relief.

   Is more than 50% of the mileage for the year used as a business expense for Federal Income Tax purposes OR reimbursed by an employer?

Drive more personal miles/less business miles so that it's less then 50%?

As oppose to a stipend based on usage, can they reimburse you mileage or say that it's a flat $500 month, lease you a car?
Link Posted: 9/8/2017 2:16:22 PM EDT
[#2]
Thanks! 

It's going to be a flat rate.  I am just trying to determine what would be reasonable based on how much I would use the car vs what my employer should pay for and how the PP tax fits in.
Close Join Our Mail List to Stay Up To Date! Win a FREE Membership!

Sign up for the ARFCOM weekly newsletter and be entered to win a free ARFCOM membership. One new winner* is announced every week!

You will receive an email every Friday morning featuring the latest chatter from the hottest topics, breaking news surrounding legislation, as well as exclusive deals only available to ARFCOM email subscribers.


By signing up you agree to our User Agreement. *Must have a registered ARFCOM account to win.
Top Top