Company Vehicle / Personal Use

1 : IF the employee needs to drive the company vehicle into the office to print a report or pick up some supplies prior to leaving town (5 minute stop), is that taxable to the employee?

2 : If so, would it be considered a one-way commute or a two-way commute and does the direction of the out of town location make a difference?

3 : Now, what if they drive the company vehicle into work, work a half day, and then leave for the out of town location? Does that change the answer? 

Answer :

1 : I do not think so as long as the company vehicle is used for business/employment purposes by the EE and UNLESS the vehicle is used for personal use.

2 :  As long as it is used for official business use, it is nontaxable to the EE.

3 : I do no think so either; there is generally no tax assessed to the EE who uses a company-owned vehicle solely for business purposes. For the company, the vehicle would be 100% deductible as an expense. Taxes are required if the vehicle is driven for personal use. Personal use of the company vehicle is any non-business use, including commuting, vacations, weekend use and miles driven by the EE’s spouse or dependents. The IRS defines such use as a non-cash benefit, with taxes…Read more…