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Company taking company provided car

Old 06-22-2017, 05:47 AM
  #21  
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My company pays the IRS rate for mileage and I drive around 25-30K miles a year.
I drive a 4WD F150 and have always viewed it as the company is paying for the vehicle that I need to own to pull my boat and hunt.
The reimbursement covers all costs and I love driving what I want.
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Old 06-22-2017, 06:07 AM
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Originally Posted by RMSail View Post
We struggle with the idea of placing restrictions on what type of car/truck they drive. One guy drove a 15 year old minivan and we ended up paying him $96,000 over the years that he owned it.

The idea of paying the full IRS rate for a 4 year old or newer vehicle (and a lower rate for older vehicles) is temping, as we would like our reps to show up at customer sites in something that looks "professional". The rusted out minivan wasn't worth it (to us) to pay that kind of reimbursement.
The company I was most recently with IMO had about the best policy I've seen. Granted it was a limited portion of the overall staff that were on a reimbursement plan. I was not so don't know the exact details, just general guidelines.

Their guideline was full reimbursement on vehicles up to 5 years old, or current body style of like model in good condition. A good many of them were driving 2007 - 2008 Tahoes right up until the body style change in 2015, and were able to carry them for 6-7 years and make out pretty good $ wise, without any bad appearances. In a few cases folks pushed the limits, but the C level guys didn't hesitate to tell someone to get a new vehicle if it was getting out of line. This was all sales staff, who frequented customer sites and frequently had customers in their vehicles for lunch, etc. Also allowed expensing full service car washes bi-weekly.
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Old 06-22-2017, 06:08 AM
  #23  
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yes $.535 /mile

https://www.irs.gov/uac/2017-standar...ving-announced
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Old 06-22-2017, 06:28 AM
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Sounds like total BS to me.

Not familiar with that tracking method but as long as it's straight forward, OK.

The BS comes with all the other stuff. Variable rates? Based on vehicle needed? New vehicle???? All that sounds nuts to me.

WTH do they care how old or what kind of vehicle?? I drive a 15 y/o p/u truck. It's been dependable as hell and the one time I did have an extended trip to the shop, I rented a p/u and turned in mileage on that.

They should be reimbursing you at the IRS rate for miles driven performing your job - PERIOD! How well you do utilizing that reimbursement is none of their business - PERIOD. If you can get away with a Prius, then you'll probably end up making some money. If you choose to drive a 4 WD diesel p/u, then you're probably gonna have to kick in some of your money on that. What difference should that make to them as long as it's dependable and decent looking?

I keep a hand written mileage log in my truck and enter that data into a spreadsheet every month that I turn in for payment. I add stuff like parking fees, stuff I buy with my money for company biz, etc on that sheet also. I provide them with rcpts for all that.

This sounds way too much like a company that's trying to get you to pay for the cost of conducting their business. I call BS!!! No way I'd go for that. I buy a car, maintain it, pay the notes, keep it insured and all that and you want me to use it to conduct your business and you'll decide on how much you're going to reimburse me for that?? Bullshit!!!!!

I've been driving my current diesel p/u truck for 15 years now. In that time I have collected mileage reimbursements for it every single one of those years. 2 different jobs with different employers and as a self employed business owner for some of those years. Bet I've collected $100k in reimbursements over the years. As far as the 2 companies that pay / paid me mileage... none of their business how much it costs me to operate my vehicle. I provide it as a service to them and they pay me for that. I check the IRS website every so often when I fill out the spreadsheet to make sure the rate I'm charging them is current and fair to both of us.
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Old 06-22-2017, 07:10 AM
  #25  
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BACK IN BLACK!
Got it!
The "change" described by the op is a bean counter upper management decision which looks great in the accounting, (look at what I can do Daddy), board room presentation.
The contract is being changed and they are writing the new one. It Will be to their benefit; take it or leave it!
When these "managers" begin changes they will always round off in their favor. Think Harvard Business School. Maybe the changes are necessary for the company to survive as suggested. Maybe they are positioning to sell.

Do the math for you and take the advice of Back in Black and a few others. It is your pocket.

When a well known marine supplier drastically changed, reduced, their employee discount program, it was not with the interests of the employees. It was just a bean counter deal to enhance the bean counters position.
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Old 06-22-2017, 07:17 AM
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I hate it when companies do this. They put you in the position of having a new car that you rack the miles up on and you are responsible for if anything happens to your employment. Nothing like going out, getting a $30K car, putting 40K miles on it a year then get stuck holding the bag on a car that is three years old with 100K on the odometer.

Are there any other options?
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Old 06-22-2017, 09:54 AM
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Speaking as a business owner with both company vehicles and employees who get reimbursed for mileage I have two thoughts. No matter what you do there will always be people that don't like it (not a fan of paying people who don't like working for me). And second there is no excuse for the company to make a change like that without fully communicating the reason to their employees.
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Old 06-22-2017, 12:10 PM
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Originally Posted by mikefloyd View Post
Speaking as a business owner with both company vehicles and employees who get reimbursed for mileage I have two thoughts. No matter what you do there will always be people that don't like it (not a fan of paying people who don't like working for me). And second there is no excuse for the company to make a change like that without fully communicating the reason to their employees.
Well said. These decisions, or mandates change the dontract between the employer and employee. "Take it or leave". Great way to manage people.
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Old 06-22-2017, 12:55 PM
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Use something like Google for your mileage so you can reproduce it unless they ask for odometer readings. Check if you should calculate mileage from the office only or from your home if it's cheaper.

I've had it both ways depending on what department I was working for.
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Old 06-22-2017, 01:13 PM
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Originally Posted by Kamper View Post
Use something like Google for your mileage so you can reproduce it unless they ask for odometer readings. Check if you should calculate mileage from the office only or from your home if it's cheaper.

I've had it both ways depending on what department I was working for.
I was a territory based sales rep. Lived in territory. I reported EVERYTHING. Corporate policy was that we could start from the house....but some of the less intelligent store managers liked to do a head check in the office every morning and afternoon. Mine was one of them, so my 35 miles each way morning and afternoon got reported. It was a ridiculous waste of everyone's time, so I took advantage to the extent possible.
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Old 06-22-2017, 01:15 PM
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Originally Posted by mikefloyd View Post
Speaking as a business owner with both company vehicles and employees who get reimbursed for mileage I have two thoughts. No matter what you do there will always be people that don't like it (not a fan of paying people who don't like working for me). And second there is no excuse for the company to make a change like that without fully communicating the reason to their employees.
Very well said. Change is always fine if it is a necessary business thing, but it should never screw over an employee who's been put in a company related financial position, or have the perception of doing so. Should also be a fairly liberal phase in period with a lot of advance notice.
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Old 06-22-2017, 01:38 PM
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This is a question, not a statement but if you are only paid for a portion of your mileage or at a reduced rate can you then write the difference off on your taxes at the IRS rate?
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Old 06-23-2017, 04:15 AM
  #33  
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Originally Posted by autobaun70 View Post
Definitely valid concerns. Biggest thing you have to size up is whether or not you have stability/commitment to the position and company. Also need to decide if this is a move of desperation on the part of the company from a financial standpoint, or just shifting some stuff around to satisfy the bean counters. I would definitely not give her a high paying job over providing the vehicle, but at the same time would not sign the note on a vehicle to work for a company that I was not committed to or that may fold at anytime.

What sort of restrictions are they putting on your choice of vehicles, and what other conditions regarding it apply?
That's just it. We don't know the entire program. We had a skype call and Motus said, our company has yet to provide all details. So the only things I know are those stated in the first two posts I've made. The rest has been speculation from people who know people, and rumors.

It starts Later this year, and we begin tracking our miles as a base line in July. So you can bet I'm hitting the road hard the next few months,
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Old 06-23-2017, 04:52 AM
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Originally Posted by 1 McKee View Post
That's just it. We don't know the entire program. We had a skype call and Motus said, our company has yet to provide all details. So the only things I know are those stated in the first two posts I've made. The rest has been speculation from people who know people, and rumors.

It starts Later this year, and we begin tracking our miles as a bad line in July. So you can bet I'm hitting the road hard the next few months,
The other angle you might want to look at is seeing how good of a deal you can get on your current company car if you like it and trust it. Not sure if the company owns it or if it is owned by a Fleet services company. And your situation a late model, mileage car may really help the numbers work in your favor. If you do pursue that, definitely get the reimbursement in writing first, so that you can then negotiate on the purchase price of the vehicle without it driving down your reimbursement rate.

Best case scenario for you if you pursue purchase is if the companies entire fleet is run through a fleet services company. If so they typically make decent money at end of life, but take a decent bath early turn ins. Knowing this, maybe will just cut their losses on the upside down stuff early, rather than fool with it.

I would definitely try to have a short conversation with one of the powers that be, but just expressed to them that you need more details, and will also need time to prepare for the transition, and see if they have more details in mind that they just haven't conveyed as of yet. I'm going to guess that a bean counter came up with the idea, but it's one of the more conceptual, scatterbrained managers is in charge of getting the message out.
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Old 06-23-2017, 05:06 AM
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Originally Posted by autobaun70 View Post
I was a territory based sales rep. Lived in territory. I reported EVERYTHING. Corporate policy was that we could start from the house....but some of the less intelligent store managers liked to do a head check in the office every morning and afternoon. Mine was one of them, so my 35 miles each way morning and afternoon got reported. It was a ridiculous waste of everyone's time, so I took advantage to the extent possible.
Your manager wasn't very intelligent, was he? Miles from home to the office aren't IRS-deductible miles.
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Old 06-23-2017, 05:25 AM
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Originally Posted by RMSail View Post
Your manager wasn't very intelligent, was he? Miles from home to the office aren't IRS-deductible miles.
Wasn't deducting them. I expensed them. Three reps in the same store all did the same. Guy was a tool bag. Had to make damn sure you had specific morning appointments set, otherwise he would turn us into delivery drivers.
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Old 06-23-2017, 05:28 AM
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Originally Posted by autobaun70 View Post
Wasn't deducting them. I expensed them. Three reps in the same store all did the same. Guy was a tool bag. Had to make damn sure you had specific morning appointments set, otherwise he would turn us into delivery drivers.
Understood - you can expense them, but the company technically can't deduct those as an expense, but I'm sure they did. They aren't supposed to reimburse for miles from home to office and vice versa. Home to customer / customer to customer / customer to home are all deductible. If they paid you for them, it's their mistake, but like you said.... tool bag!
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Old 06-23-2017, 06:11 AM
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Originally Posted by RMSail View Post
Understood - you can expense them, but the company technically can't deduct those as an expense, but I'm sure they did. They aren't supposed to reimburse for miles from home to office and vice versa. Home to customer / customer to customer / customer to home are all deductible. If they paid you for them, it's their mistake, but like you said.... tool bag!
Now I follow. Yep. Sales staff was required by corporate and the sales manager (floats between multiple stores) to go by the office some, but not on a particular schedule. Idiot loved to see what he could get them to do to avoid paying hourly staff or running the more expensive big trucks. He's definitely one of those guys that thinks you can save your way to a profit. Tried at one point to cut off our $25/week expense allowance. It was a joke to start with, but did at least give us a few bucks to spread out doughnuts or biscuits to office trailers on occasion.
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Old 06-23-2017, 06:26 AM
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I use my own personal vehicle for work (state employee). Sometimes I wish I drove a Prius because the $0.535/mile reimbursement would look a whole lot better than after having driven my GMC Sierra. I think one thing to aim for is a balance between upfront cost for the vehicle and cost of ownership. Seriously, buying a gently used Prius may make a lot of sense (I can't believe those words just came out of my mouth). Kind of like the earlier poster who bought the 2007 Impala for a song. He's making money every time he drives, which is a good thing because that car is going to need to be treated as a disposable item with the mileage being put on it.

Good luck with the change. I've never had the benefit of a company car so I don't know what I am missing. I am sure you will adapt.
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Old 06-23-2017, 06:29 AM
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Originally Posted by Back-in-Black View Post
Sounds like total BS to me.

Not familiar with that tracking method but as long as it's straight forward, OK.

The BS comes with all the other stuff. Variable rates? Based on vehicle needed? New vehicle???? All that sounds nuts to me.

WTH do they care how old or what kind of vehicle?? I drive a 15 y/o p/u truck. It's been dependable as hell and the one time I did have an extended trip to the shop, I rented a p/u and turned in mileage on that.


They should be reimbursing you at the IRS rate for miles driven performing your job - PERIOD! How well you do utilizing that reimbursement is none of their business - PERIOD. If you can get away with a Prius, then you'll probably end up making some money. If you choose to drive a 4 WD diesel p/u, then you're probably gonna have to kick in some of your money on that. What difference should that make to them as long as it's dependable and decent looking?

I keep a hand written mileage log in my truck and enter that data into a spreadsheet every month that I turn in for payment. I add stuff like parking fees, stuff I buy with my money for company biz, etc on that sheet also. I provide them with rcpts for all that.

This sounds way too much like a company that's trying to get you to pay for the cost of conducting their business. I call BS!!! No way I'd go for that. I buy a car, maintain it, pay the notes, keep it insured and all that and you want me to use it to conduct your business and you'll decide on how much you're going to reimburse me for that?? Bullshit!!!!!

I've been driving my current diesel p/u truck for 15 years now. In that time I have collected mileage reimbursements for it every single one of those years. 2 different jobs with different employers and as a self employed business owner for some of those years. Bet I've collected $100k in reimbursements over the years. As far as the 2 companies that pay / paid me mileage... none of their business how much it costs me to operate my vehicle. I provide it as a service to them and they pay me for that. I check the IRS website every so often when I fill out the spreadsheet to make sure the rate I'm charging them is current and fair to both of us.
Companies don't want their employees pulling up to a customer in a pos, and if they are paying, they can do what they want.

I personally have a company car, and it states that we have to make sure it's clean at all times and free of any damage. When you're working for a large company, appearance means something. Just like I have to keep a professional appearance and dress appropriately.
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