Need Advice

[Danny Trevino]

Have client that is getting $1000.00 a month vehicle allowance from employment and gas is paid. The allowance is added to his wages and taxable.
Can he write off mileage on 2106?

[RitaB]

If his expense exceeds the reimbursement

Yes, to the extent his expense exceeds the gasoline reimbursed. I am assuming that the gasoline payments are not being added to his wages. If they are, then all his actual expense is deductible. Also assuming he is driving his own vehicle.

[Gretel]

...also assuming this does not any part of commuting expenses.

[taxxcpa]

A specific Title

Why not use "Mileage allowance question" as a subject to attract the attention of mileage experts instead of people who always ride a subway.

[Danny Trevino]

Hi Rita

His gas is paid for and not taxed. He has company credit card for gas. He also receives the $1000 a month that is taxed for vehicle allowance.

Yes, to the extent his expense exceeds the gasoline reimbursed. I am assuming that the gasoline payments are not being added to his wages. If they are, then all his actual expense is deductible. Also assuming he is driving his own vehicle.

[Burke]

I just had one of these. He got his legitimate business mileage, less the amount the company paid for and/or reimbursed him (which was the gas they paid for on the credit card.) He had to get a print-out of that for the whole year.

[Danny Trevino]

The company paid for all his gas. How can you translate that to miles.

I just had one of these. He got his legitimate business mileage, less the amount the company paid for and/or reimbursed him (which was the gas they paid for on the credit card.) He had to get a print-out of that for the whole year.

[FEDUKE404]

Say what?

The company paid for all his gas. How can you translate that to miles.

Ah, you don't deduct "gas" but rather mileage...assuming the guy does not go with full expenses/depreciation/etc.

The "gas" is a form of monetary reimbursement (not really any different from getting $x/month "allowance"), which can be used to reduce **legitimate** business travel expenses. Those generally fall into such things as total miles on car, total commuting miles, total personal miles, and total business miles.

And I'm sure the guy has a travel log, and is not claiming commuting, correct??

Yes, it is a sad truth, but sometimes employer's "reimbursements" magically turn into taxable income for the employee.

FE

[RitaB]

If he's an employee

The company paid for all his gas. How can you translate that to miles.

You figure his legitimate mileage expense and enter it on Form 2106, line 1, Column A.

You enter the amount he was given tax free for gasoline (in dollars) on Form 2106, line 7, Column A.

If he has more expense than reimbursements, the difference goes to line 23 on Schedule A. If he had more reimbursements than expense, he has income that goes to line 7 of Form 1040.