My question is about 100% business use vehicle. If they drive it to the office daily, would that be personal use? I know my husband works for a major corp and they have what the call home garage and those employees drive those business vehicles to work and don't get anything added to their W-2 for that. I'm confused about the commuting with 100% business vehicle. Is it then not a 100%?
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First question:
Who owns the vehicle, and who pays operating expenses?Evan Appelman, EA -
One of the partner's bought the vehicle, but is in the business name. The expenses are paid by the partner, but probably should be investment in the company.Comment
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I'm listening to myself, and if it's in the business name that seems like a no brainer. But Circular 230 and the commute has me very concerned!Comment
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Do 100% business vehicles need a mileage log?Comment
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It sounds messy.
I wouldn't think it could be 100% business use if a partner uses it for commuting. I was hoping someone else would weigh in on this. And I'm not sure your husband's "major corporation" shouldn't really be reporting something on the employee's W-2. It strikes me as going way beyond any transportation fringe, unless the employee only lives a few blocks from the office.Evan Appelman, EAComment
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Unless the tp is on call 24 hours a day, I would say they are not 100% business use vehicles and the tp should be charged for the commuting costs on his W-2. I did have a case about 15 years ago where there was a security issue (vehicle vandalized a couple of times) on leaving a company vehicle at the business and keeping it at the owners home was the best alternative. In that case I did not charge commuting costs to the owner.Comment
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I can't
Imagine not charging the partner for commuting. Emergency or otherwise.Comment
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