value of a take home vehicle?

MS HR

does anyone know how to compute the monetary value of a take-home vehicle furnished to an employee to be used on the job but also for personal uses?

i'm trying to compute a "hidden compensation" dollar figure.

System

I'm looking for similar information, but in regard to police vehicles. When I come up with something, I'll be glad to share.

mwild31

This site won't give you the actual costs (the write-up is info on payroll taxes), but short of a simple calculation, it might be able to get you started with the reseach....

[url]http://www.payroll-taxes.com/Articles/vehiclePersonal.html[/url]

Peyton Irby MS

from a legal standpoint, it is to be measured at the "fair value" of the usage. i am not sure what methods have been approved by the IRS or wage & hour, but it would seem a mileage charge would work. the employee records personal use miles and is "compensated" based on the number of miles.
Peyton Irby
Editor, Mississippi Employment Law Letter
Watkins Ludlam Winter & Stennis, P.A.
(601) 949-4810
[email]pirby@watkinsludlam.com[/email]

MS HR

thank you mr.irby.
at least that's a starting point and i appreciate it very much.

pork1

[font size="1" color="#FF0000"]LAST EDITED ON 07-23-04 AT 09:50AM (CST)[/font][br][br]MS HR: For our purposes in the compensation arena, we have used an off set value of $5,000 to $7000.00 as a value realized by the ee for the assignment of a company vehicle for full time use. By having a company vehicle to use, one off-sets many factors of personal expense: purchase and loan payments, maintenance,insurance,fuel, etc. I presently have a company vehicle assigned and I keep a daily log of my use. Travel from home to work and return is personal use; travel to lunch to feed my face or after hours to run to the store,is personal use. The IRS requires a daily log to support one's personal use, otherwise, all use may be considered as personal use. I could leave the company vehicle assigned to me in the company parking lot and use it when I have a need for the conduct of company business, thus I would not have any personal use miles. I keep it and record all miles travelled and assign those odometer registered miles to personal use, as appropriate. Thus off setting my personal expense for a personal vehicle a believed offset of $7000. per year.

This has nothing to do with the personal use of a company vehicle in the reporting to IRS. In the JULY 2004 issue, VOL. 9 NO 9 of "PAYROLL LEGAL ALERT",`it provides a General Valuation method FOR CALCULATION: "Sam drives a company car with a fair market value of $22,000.00; the fair market value of the lease is $6000.00 a year. He drives 40,000 miles, 17,000 RECORDED (MILES IN THE LOG) of which are personal use miles: 17,000/40000=.425x$6000.00=$2550.00 is the taxable value of his personal use and charged to the ee's W-2 annually as income not received in cash or check.

Hope this helps.

PORK

PS: THE "FAIR MARKET VALUE" IS BASED ON THE VALUE IN YOUR PARTICULAR LOCATION. My car was purchased this year for $16,000.00, next year, the value will reduce and the personal use miles will be cheaper by $4000.00 based on the depreciation schedule. Thus my personal use miles will also be cheaper and my total income lessened by the reduced value of my assigned vehicle.

MS HR

>Hope this helps.
>
>PORK
>
>Wow! You definitely have put some time and effort into this.

I will "steal" your idea and use it if I need to do the factoring somewhere down the road.

thanks so much for all who replied.

pork1

MS HR MS: You are never stealing when we put a thought on the forum for anyone's use. Just read it and take from the forum whatever will fit for you and yours.

It is worth while to know I or any of us might have helped a member of the forum, "a friend in need, is a friend indeed".

PORK