Car allowance from employer
- Thread starter kjcba8101
- Start date
Mine is offering $7200 a year plus gas. I was looking at explorers. Nice looking. I would seriously consider one. With your allowance, do you come out ahead or behind in the grand scheme of things?
My wife can take $600 a month plus a gas card or pick out any car not over $35,000 on a 2 year lease. So new car every 2 years with free gas, tolls and all maintenance paid for.
My wife has a very similar setup but in my scenario I function as the employer!
I've never really put a pencil to it but I would guess that I come out a little ahead.
You have to show proof of like 80% or something that the car is used for work to not pay taxes. You would need to check on this number with a tax person. I keep a log of the miles I drive in my car just in case I am audited. There are all kinds of apps and stuff that will track this.
My wife and I are standing up a business right now. I've been looking at how to do this and it just seems like it isn't something I want the headache of doing. Mostly because we won't really have to drive for business often enough to justify it. I'd love to get advice. I haven't found a CPA yet, still early in setting up and we may be a year or two from receiving any kind of income. Still have a lot of research to do.
I work in oil and gas and am currently getting $500/month and around $.27 a mile for business related miles. Only requirements are that it has to be 4 door, no body damage, and good working condition. Not bad, but it used to be $750/month. Thanks OPEC.
For new or pre-owned? I'd be leaning toward a 2012 model if I make a move. Thanks for the heads up.
