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Employee Business Use of Car

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    Employee Business Use of Car

    Employee works for Verizon. Gets $500 per month car allowance reported on W-2 as wages. This is a non accountable plan, she doesn't have to report her mileage to get the $500.

    She's driven 19K miles visiting clients in her home city and small towns outside of metro area.I'm thinking she can claim this mileage at standard rate as an employee business expense subject to 2% of AGI ? She would use form 2106 to figure expenses.

    Am I right on this treatment ?

    #2
    Business use of car

    You are correct as long as the business mileage is recorded.
    Form 2106 and Sched. A

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