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May 6, 2024
Question

Tax strategy for work vehicle.

  • May 6, 2024
  • 1 reply
  • 0 views

I will be getting a vehicle allowance as a part of my job. The car allowance will be taxed as ordinary income to me. I travel to a different location for work and my company pays for the flight and the hotel stay at the job site. Now since they are providing me with a car allowance, what is the best way to get a tax write-off. If I rent a vehicle from the airport, can I write off the whole rental, gas and insurance? Or is it better to buy a dedicated vehicle (or lease it) and then I can write off the gas, insurance and vehicle amount. I appreciate you all taking the time to respond.

1 reply

rjs
Employee
May 6, 2024

If you are an employee (you get a W-2) you cannot deduct any job-related expenses, including car expenses. It doesn't matter whether the expense is rental, lease, or purchase. The tax law that was passed in 2017 eliminated the deduction for job-related expenses for years 2018 through 2025.