My boss offered to convert my truck (owned by me) into a company vehicle (which I'd drive, the company would own and pay maint/fuel).

Sounds good, eh?

Downside is that he'd use it to pull his camper when he goes camping. I'd also lose the freedom of choice - if he decides to keep the truck for 180,000 miles, then that's what I drive!

I actually had a company F-350 PowerStroker, but had him switch me to 'pay-by-the-mile format so I could choose my own vehicle at my own time frame. I'd get to use his car or SUV when he has the truck.

Upsides are: who cares about fuel mileage/cost/door dings/etc.

What would you do?

 

I get $$$ per month for mine.
Draw backs
Must be 5 years 80000 or newer
Need more insurance than normal
No fancy lifts ect.
Must approve new trucks prior to buying
No high profile colors

Advantages
My ins.
My fuel stops
my maint.
My tax deductions
Truck I want with my options

 

How does your company reimburse you? I was told that a flat monthly check would need to be considered income (taxable). I get reimbursed mileage which is not taxable per my accountant.

Mind sharing the amount they reimburse you? Send me a private message if you want.

Thanks!

 

then sell them the truck or transfer the note plus $$$ for the equity in it and buy yourself another one . then who cares if he takes whenever

 

I had a lease vehicle a couple years ago and the smartest thing I ever did was to ask them to make it a company vehicle. They did it and I continued to drive it exactly as I already was. I hated that Chevy truck though.
Now they just give me a car allowance and pay for my fuel. It's still worth it in my book....

 

Do it and buy yourself another for the weekend!

 

It sure seems like we've had this conversation on here before....and I think the consensus at that time was don't do it.

 

What happens when you get fired??? No more truck.

 

how long do you have to decide?

If you have time, keep a spread sheet of what it costs for you to drive per mile (maintenance, fuel, repairs) then decide if you are getting that much with the IRS standard deduction of $.405/mile or what ever your boss is paying.
Right now, its running me about $0.12/mile and im getting a $.405/mile IRS deduction. This isn't including depreciation, but I look at it as, I would be taking that hit either way.

 

That 0.12 per mile seems a little low. Have you hit any major maint. yet (tires, brakes, etc)?

My '03 is closing in on $0.10/mile in fuel alone and I think I'm getting better MPG then most. Haven't added in engine oil, filters, wipers, diff. oil, or the one set of tires yet.

 

I did that spread sheet and figured $0.35 to $0.38/mile including:

- oil changes
- tire wear ($800/40,000 miles)
- depreciation
- maintenance surprises
- insurance
- car (truck) washes
- fuel ($2.20/gal and 16 mpg avg.)

 

no major maintenance. Replaced my tires at 60K with a $400 set and an $60 battery at about 45K.

Im also pushing almost 20 mpg running synthetic fluids changing oil and auto transmission pan fluid every 8K to 10K

Like I said, I dont include depreciation, insureance, washes, etc because I would have my frontier even if I wasn't using it for work related activities.

 

Will there be ANY deductions for using it (ie taxable benefit?)
upside, (to the boss buying it) if there are any major repairs you don't have to worry about them, you are insulated from rising/falling fuel costs
downside, you can't make money on the reimbursement (if it is possible) you have no say in how the truck is maintained or who maintains it or who drives it. you lose on any tax breaks you may get.

I drive a company van (they bought, insured, fuel and maintain) because I use it for work and can't use it for personal I have no deductions. The only benefit I have is that I am not paying to drive to and from work....