mileage

[DixieEA]

Hi, Taxpayer is sales rep. Employer gives taxpayer credit card to purchase gas.
Taxpayer pays all other expenses on car. Taxpayer drives in excess of 35000
miles for business. I know i can claim actual expenses for depr., repairs, and ins
Can I use the optional method subtracting out the total gas reimbursement not
included on w-2 form on line 7 fornm 2106?

[HBurkholder]

I am not sure what you mean by the optional method. I assume you mean using the standard mileage rate method. I would use this method and add the reimbursement of gas as income.

[DixieEA]

Thanks

HBurkholder, the standard mileage rate is what I was referring to.

Thanks, DixieEA

[GIMoe]

reimbursement

I am not sure what you mean by the optional method. I assume you mean using the standard mileage rate method. I would use this method and add the reimbursement of gas as income.

I think that would be a good solution also. The question is, did he get reimbursed for the gas he purchased, or did the bill go directly to the comapny, since it is a company credit card? If the company paid the credit card bill, then how would you determine the "reimbursement" amount. Unless he kept every receipt for all his gas purchases.

[HBurkholder]

valid point

From the original post it appears company paid the bill. If he did not save receipts or if company cannot furnish credit card statements from which he can get figures, it seems to me that he would need to go with actual expenses without expense for gas. One other "possibility"- Do we know what IRS uses for the gas portion of mileage figure? Could you calculate that number times miles driven and add to income?

[DixieEA]

gas statement

GIMoe, taxpayer contacted employer and got statement for gas placed on the credit
card.

DixieEA

[GIMoe]

Gas Statement

GIMoe, taxpayer contacted employer and got statement for gas placed on the credit card.
DixieEA

That's good. You said, I believe, 35000 business miles, which equates to a $15,575 deduction. So, just figure out which method would be most beneficial for the TP, mileage + adding gas amount back in as income, or leaving gas amount alone and taking the rest of the actual expenses (oil changes, tires, repairs, depreciation, etc...).

[ChEAr$]

Not as income, though.

I am not sure what you mean by the optional method. I assume you mean using the standard mileage rate method. I would use this method and add the reimbursement of gas as income.

Use mileage at 44.5 on page 2 of 2106 and on page one subtract reimbursement.
Not exactly same thing as adding as income, since that, on page 1 of 1040,
would inflate AGI and increase medical 7 1/2 floor.

[jainen]

reported as wages

>>subtract reimbursement<<

What reimbursement? There is no reimbursement. This is not an accountable plan. Use of the company credit card is a taxable fringe benefit which should be included on the W-2, but otherwise is still reported as wages.

[khopkins21]

How so?

>>subtract reimbursement<<

What reimbursement? There is no reimbursement. This is not an accountable plan. Use of the company credit card is a taxable fringe benefit which should be included on the W-2, but otherwise is still reported as wages.

How does the use of a company credit card to conduct company business constitute a taxible fringe benefit?

[jainen]

That's what it is

>>How does the use of a company credit card to conduct company business constitute a taxible fringe benefit?<<

That's what it is. He can use the card, and he doesn't have to account to the company for it's use. He puts the gas in his personal car and uses it for whatever he wants. He can take the appropriate deduction for business usage. That's what it is.

[Zee]

How does the use of a company credit card to conduct company business constitute a taxible fringe benefit?

Good question. I hadn't thought about the fact that a company credit card might be an non-accountable plan. My wife telecommutes. She has a company credit she uses for postage, office supplies, airline tickets,etc. Each month, she receives a report from her employer and is required to identify the nature of the expenditure, business purpose, etc. Isn't that an accountable plan? She doesn't use the card for gasoline and reports those type of expenses (mileage, etc.) on a regular expense report.