Help please. currently interviewing for company that pays car allowance. I have always had a company car. What is a good amount for a car allowance? Is it standard for companies to pay for gas directly? Just curious to know if I will be out of pocket with a car allowance? Is it better to lease or buy?
okay, many people have looked at this question, but no response yet? someone who has a car allowance, please enlighten us. thanx
I had a company car for 30 years and then worked for a small company who paid .38/mile for business use of my personal car. I paid for everything, gas maintainance repairs. Will they spot you an upfront couple of grand to get into a nice gas efficient auto? I made money on the deal as I did 25k miles/yr. Providing the IRS raised the mileage allowance to address the increase gas prices it could be at its worst a wash. 25K miles X .38/mile = $9500
I'm in the same situation and I hear that one can write off all of their car including gas for taxes as you use it for traveling for business. I'm thinking about getting an Accord or something not to fancy as I don't want to pull up next to an office in an expensive car and make the physician or prescribers think their supporting you to well. You need all the support you can get.
like most things it depends. Our company starts at 550 plus gas a month. The allowance is built into the w-2 sso it's taxed and shows as gross income EOY. I keep track of all business mileage and my accountant adds up the federal milelage amount and subtracts that from the dollar amount gas reimbursed and I get the difference in deduction. Promotion brings more in car allowance. Some companies offer 850 a month, some 450 plus federal mileage rate. You've got to find out if gas is provided or you eat it out of your allowance. if you get an allowance you have to consider again insurance, taxes repairs and maint but the car is yours. Also you have to consider if it's taxed or alotted on w- as allowance. If that's the case there is no room for deduction, but if it's taxed then you don't realize the full amount of allowance each month. I bought a solid used car and drove it into the ground. Had it paid off in 2 years and then pocketed the allowance as income. The biggest mistake made coming to an allowance is financing a new car based on the monthly allowance. look at the allowance as additional income. Get a solid used car and pocket the difference.
Car allowances are fine as long as you don't work for Sempermed!! They pay between 375 and 550 per month, but they tax it first. After that, they only pay .15/mile (yes.. that's fifteen cents per mile), no gas reimbursement. Oh, and reps cover multiple states. Is this even legal?
