Car allowance + gas

[KJ Judd]

I haven't seen this done this way before. Client receives $500/mo car allowance plus the company pays for all gas. Do I have any deductions to claim? Maybe depreciation of FMV of car when he started this job?

In the past I've seen a flat allowance, which I've subtracted from business miles x IRS cents per mile.

[Unregistered]

This sounds like expense reimbursement under a non-accountable plan. As I understand it, the amounts paid by the employer under a non-accountable plan should be included in the employees W2. If that is the case, then Form 2106 should be prepared to try and deduct the expenses.

If I am incorrect someone else will jump in and correct me.