Expert: John Kirk, CPA Date: 7/24/2008 Subject: Personal mileage on a company car
Question Hi!
I have a company provided vehicle. My company charges me $33.00 every two weeks plus the cost of gas for the personal miles I use each month. Recently, I was informed that when I am asked to visit the corporate office (50 miles away)for company sponsored meetings, etc, I am required to pay personal mileage for that trip. With past company cars, I didn't have to pay personal mileage for meetings. If I drove to the office due to my own decision, I had to pay personal mileage. Also, I was told that other employees farther away were considered 'not local' and are not subject to the same rule as I am - they consider me 'local'. I asked if they could provide the IRS rules on what is considered local and not and I have not been provided anything yet.
Can you help?
What is considered personal mileage according to the IRS?
THANKS!
Answer There is no definition of local for tax purposes. Any miles you drive after your commute from your residence to your place of business as deductible at $.585 per mile.
The company's policy on reimbursement is their own policy and not dictated by IRS regulations.
