I know the current IRS rate for personally owned cars used for business is 50cents/mile. I have a company owned car that I use and get reimbursed 17 cents/mile for business miles. Is that 17 cents a figure that the IRS sets or my company sets? I’m told that it is the IRS but now I am skeptical.
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This entry was posted by admin on February 25, 2010 at 1:31 pm under IRS. Tagged Business Miles, Cars, Company, Company Car, Company Cars, Current, Irs Mileage, Irs Rate, Mileage, Owned, Reimbursement, Reimbursement For Mileage.
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ninasgra says:
This says 14 cents but maybe its higher for 08http://search.irs.gov/web/query.html?col…
February 25, 2010, 1:49 pm>
butcher1 says:
The IRS does not have a reimbursement amount required for your situation.
February 25, 2010, 1:55 pmHow you are taxed on the reimbursement depends on how the employer reports your personal and business use of the car. You need to ask them about how your compensation and reimbursement will appear on your W-2. That will tell you or your tax preparer how to report this compensation.
The rules for this are in the IRS Publication cited.
kate says:
The company is setting the .17 cents as a reimbursement for the gas you are buying. They should be adding the value of the personal use of the company owned auto to your W-2 at least once per year.
February 25, 2010, 2:47 pmwaggy_33 says:
Congress and the President set this limit by passing and signing the legislation.
February 25, 2010, 3:25 pmThe IRS is the body responsible for enforcing this legislation, but the IRS cannot make their own laws.