We have company vehicle we make all payments and repairs etc. can we claim ,the vehicle is used for work only.

Question

vehicle is in company's name yet we pay for all registration,inspection , and necessary upkeep,and had many costly repairs($3000). We get a monthly gas allowance which we easlily exceed each month.Other than that everything comes out of our pockets and it has been a costly year!

Answer 1

So what's the advantage of having a company vehicle? I'd give it back.

Answer 2

There is a lot of information you don't understand. 1st off, GAP will not come into play, since you are not "upside down" on your loan. If you owed $12,400 and if they valued your car at $8,250, then GAP would pay your lien-holder $3,170 and you would pay the rest of the $1,000 deductible out of pocket to total of $12,400. I guarantee you that the only way you can get your car back is to pay off the loan period.....since the lien-holder wants either the car fixed or paid off, nothing in between. Since totaled, you cant guarantee that you can fix the car to prior to the accident. Or put another way, if you were to stop making payments and they re-po the car, if not fixed, then the value of this vehicle goes down the toilet. With any totaled vehicle, all options on the car can add value. But if you have for instance a great sound system, and then replace with the standard system, they will lower the value of your car. I am totally confused as to putting in new and selling the aftermarket since it would appear that you would end up with less vs more. As for the difference with salvage values of the 2006 Focus vs the 2003 350 Z, is that there are a lot more 2006 Ford Focus out there vs a 2003 350 Z, since most people can afford a Focus but not a 350Z. When a car is totaled, the salvage yard or auction place can use all NON damaged parts for other 350Z's that are damaged in an accident. As an example, a door could be used vs buying a new door for another 350Z. The value of these parts are more valuable vs a Focus, thus higher salvage value. Seriously, not sure if by buying it back, you want to fix it to drive again, and if so, most likely the estimate you got is the cost it will be to fix. Also many insurance companies will not insure a salvaged car, or in some states may have to jump through a lot of hoops to get it registered. Do you have enough knowledge on how much your car parts are worth, or even how to go about selling them? One last thing. No, they cant sell your car till they settle with you, but for the other guy to state they paid storage for 2 years, most likely wont happen. They can at some point, stop paying and you would be on the hook for the daily cost to store, and then subtract out of your settlement. good luck

Answer 3

Yes but only the portion used for business. And if you don't own the car (you are employees) then you can't write off the monthly payment.

If you drive it to work, then that portion has to be subtracted (no tax deductable). Going to work is something you have to do anyway. So if you use it to go to work (10 miles round trip), and there are approximately 200 work days per year, you are putting in 2,000 miles - non business - non deductable.

If you were to put on the car total of 10,000 miles this year (8,000 business miles), then you can only deduct 80% of the total costs (gas, oil, repairs, etc.)

But you (again) have to subtract any allowance on top of that. So if your 80% came out to $8,000 (made up easy number) and you were given $3,000 in gas allowance, then in the end you can only deduct $5,000.

So the bottom line is that you can deduct your actual / calculated out of pocket expense.

Good Luck

P.S. Your tax preparer will know the exact details.

Answer 4

Sure you can, but why would you? It won't lower the rates, all it can do is put an exclusion on your policy that says there isn't any coverage if the vehicle is being used for personal use.

See, on a commercial policy, a private passenger type vehicle can be rated one of three ways : service use, courier use (carrying stuff for a fee), or livery (carrying passengers for a fee). Service use is the cheapest. So saying there's no private use, doesn't help you out AT ALL.

Answer 5

If you itemize deductions (schedule A) you can either write off the IRS business mileage allowance (48.5 cents/mi) OR your actual documented expenses, in either case minus what you were reimbursed (untaxed) by the company.

For example if they actually pay you the allowed 48.5 cents/mi (untaxed), you could only deduct the amount that your documented fuel, maint, etc. expenses exceeded that. Or if they pay less that 48.5 cents/mi an alternate would be to deduct the standard allowance minus amount reimbursed per mile.

Answer 6

If the vehicle is in the company name it is absolutely business expense. Write every bit of it off.

Answer 7

write every thing off plus miles $0.35 mile i belive