Mileage Reimb.

[geekgirldany]

Customer works for Home Depot. She drives her truck to deliver inventory and check on progress of contractors Home Depot gets for the installs. Home Depot reimbures her for the mileage driven. She says that the amount are added to her W-2. But no where on the W-2 do I see anything listed about the mileage. She gave me printouts from Home Depot and to me it looks like checkstubs. She says they add the amount to the W-2 and take taxes out of the reimb. But I dont' think this is correct. These amounts are not ususally added to the W-2 box 1 correct?

Add to that she is in a partnership with "satellite" office in Washington and the main office in georgia. They are wanting me to take 50% of her truck for business use. But I know she hasn't worked in the partnership much because the guy in Washington has done all the work. I jsut feel in my gut the truck hasn't been used 50% in the business. They are wanting me to deduct it though.

Just need to talk this out

[Gretel]

I would think that Home Depot will reimburse mileage under an accountable plan and not add it to the W-2 as non-accountable plan. If you look on one pay stub you should be able to determine this.

As far as 50% car use for partnership goes: Have her sign a statement with total miles and business miles and take it and educate her about record keeping.

[jainen]

accountable plan

If she does not have an accountable plan, Home Depot will just add the reimbursement amounts to taxable wages. They don't have to show it on the W-2. She can deduct actual expenses or standard on Form 2106, if she has written evidence to support it.

Same thing with the partnership. If she has a mileage log she can deduct accordingly. If she doesn't, she can't. (Even without written evidence, most preparers would allow a reasonable estimate based on the client interview.)

[geekgirldany]

thank you guys. I just get the feeling during my talk with her that she did not do very much for the company. She gave the money to keep it running. But this was for her partner. I'll do a little more digging.

ON the mileage reimb. I guess it doesn't really matter because she does not have enough to even do a 2106 on Schedule A to be able to deduct it. I wasn't sure how the larger corporations done it . I just thought that it had to be shown on the W-2.