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Other Side of River
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Discussion Starter · #1 ·
What would be a reasonable milage or daily car expense? It is going to be about 60 mi. per day and alot of help to me that he is willing to use his car to get to the job. Thanks
 

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.35-.40 cents per mile. Why you asking, ask him. Lots of variables. Gotta figure just how valuable his driving is to you. Do it the simple way, both of you write down a number and split the difference.
 

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8anned
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IRS reimbursement rate is currently 55 centavos.
 

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My company pays max IRS, I think close to $.60 per mile. Maybe 58.5 or so.
Carl
 

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Other Side of River
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1,235 Posts
Discussion Starter · #6 ·
.35-.40 cents per mile. Why you asking, ask him. Lots of variables. Gotta figure just how valuable his driving is to you. Do it the simple way, both of you write down a number and split the difference.

I'm asking because i thought it would be a good place to see what the going rate is.He is very willing,i want it to be fair to him and good for us.Good idea on slitting the diff.
 

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If the travel is associated with his normal commute (home to office), then that amount is considered taxable income and must be reported.

If the travel is from office to client, the difference (mileage to client - mileage to office) can be expensed at the IRS rate.

If he has a home office and that is part of the work agreement, and only travels to clients as needed, then that amount (mileage to client) can be expensed at the IRS rate.

Currently working on an special investigation into these activities, lots of TAX and IRS crap to read. Might want to contact a TAX attorney to make sure everything is on the up and up, otherwise your company and the employee can be held liable.
 

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.55 cents per mile, ouch. I've been doing the actual cost on taxes for 3 years now. I know when it was .37-.38 cents, I was losing deductions.
 

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.55 cents per mile, ouch. I've been doing the actual cost on taxes for 3 years now. I know when it was .37-.38 cents, I was losing deductions.
I stopped having my employer reimbursing me for car expenses (was not making up total costs) and instead classify them an unreimbursed work expenses on my tax return (actual costs) and now I break even. Also helps that I have a work only car for business and my truck for everything else.
 
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I pay my field people an additional $6K per year additional salary to use their own cars, and reimburse gas, oil, tires and batteries.
 

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I stopped having my employer reimbursing me for car expenses (was not making up total costs) and instead classify them an unreimbursed work expenses on my tax return (actual costs) and now I break even. Also helps that I have a work only car for business and my truck for everything else.
Sounds like a smart move to me.
 

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i can tell you that at 600 dollars a month that an employee is upside down and if this employee is not in commission sales in 4-5 years he's car is done and will have to buy another and he will have put 3-400 a month addl. into that car either with payments or repair unrembursed:))ThumbsDwn
 

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Living in a cage of fear
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If the job is a temporary assignment, don't get into vehicle and maintenance reimbursement. Mileage is enough.
55 cents covers fuel and wear for that short a drive if the job location is temporary, IMO.
 
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