OT: Car Allowance for Mid-Atlantic area

[macphanatic]

I was offered a job today with a car allowance. I'm trying to find what is considered reasonable for the Mid-Atlantic area (Philadelphia up to North Jersey). I will be doing engineering for an insurance company.

[elmo3]

Regardless of your allowance, the IRS deduction is currently 44.5 cents/mile. See form 2106.

If your car allowance pays you that full amount, great. If not, you may deduct the remainder as an unreimbursed business expense.

Then there's the question of how this "allowance" is paid to you. Is it paid as income, with tax withheld? Then it's just income, and you may deduct your entire 44.5 cents/mile from your taxes.

Is it paid as a true expense reimbursement, and no taxes are withheld? Are you tracking and reporting your mileage? Then you apply it directly against the IRS 44.5 cents/mile total deduction.

An "allowance" doesn't sound like reimbursement; it sounds like extra income. If there's no requirement that you track your miles for the company, and if this allowance is subject to all withholding, then it's just extra income.

The instructions for form 2106 are quite clear and easy to read. Be sure not to deduct your commmute miles to your first stop and from your last stop home, if it's in the home city where your office is.

[Bernie]

Well let's see, gasoline is now 2.69 a gallon here in Virginia. I am not trying to steal this thread but, I would not want a Hummer.

[Panopticon]

Bernie Wrote:
-------------------------------------------------------
> Well let's see, gasoline is now 2.69 a gallon here
> in Virginia. I am not trying to steal this thread
> but, I would not want a Hummer.
>

How much is diesel fuel? Post '97 Hummers (H1 civilian) have diesel engines. http://www.amgeneral.com/

btw-Good info elmo3 ::o