Charge Back for Personal Use of Auto?

[zeros]

Owner uses company car for personal use also. Need to figure out the personal use expense and charge back to owner on W-2. Don't know if anybody is familar with this. Annual Lease Value Method. Auto is 4 years old. He has his personal use mileage and total miles. Do we use the original cost of the auto and then go to the chart for the lease value? Then determine the percentage of personal use times the value? Company, of course, pays for the gasoline and repairs also.


Anybody familar with this calculation?

[DMICPA]

Auto Use

I use this for officers that use the Company auto for personal use. Normally the auto is new so I go right to the lease valuation table. If you are saying the auto is four years old and now becomes a Company car, I would guess that you would use the FMV at the time the auto was converted to a Company car.

There are templates to figure this calculation and include it on the W-2. You can also make an election to use a November 30 cut off date instead of waiting until the last part of December. This value is re-computed every three or four years.

Bob

[kpangelinan]

I use this for officers that use the Company auto for personal use. Normally the auto is new so I go right to the lease valuation table. If you are saying the auto is four years old and now becomes a Company car, I would guess that you would use the FMV at the time the auto was converted to a Company car.

There are templates to figure this calculation and include it on the W-2. You can also make an election to use a November 30 cut off date instead of waiting until the last part of December. This value is re-computed every three or four years.

Bob

That's what we use...kbb current fmv and I believe that is how it's noted in the code.