Taxing of fringe benefits... Cancel The title field is required!

1. Ashton Alan W

   
   7/6/2011 1:07 PM

   Hey everyone,
   
   Wanted to see if I can get some input on this...
   
   My club just decided that I need to be taxed on the "personal use" portion of my use of the company truck... the auditors pointed it out... I see that there are three methods to choose from: cents per mile, commuting rule and lease value rule. Wanted to see what other clubs are using and why... The truck is a 2002 Sanoma with a value of $3,000 (from NADA), so lease value rule looks the most favorable at first glance...
   
   Edit: cents per mile is out as we don't meet the 10,000 per year "mileage test"... average about 7,000 per year.

   
   
   
   
2. Jeffrey Whitmire

   

   0 posts
   
   7/6/2011 6:07 PM

   Alan,
   
   I am taxed on cents per mile. I turn in my mileage sheet with every paycheck. I will have to look into this more closely since my personal miles are only 8000 - 9000 per year.
   
   Jeff Whitmire, CGCS
   Golf Course Superintendent
   Williamsburg Club
   Williamsburg, VA

   
   
   
   
3. Troy Sanders

   

   0 posts
   
   7/6/2011 8:07 PM

   Anything in the fringe benefit category should be appreciated. A vehicle allowance per month with proper taxes taken out on your paycheck is the best scenario. Many guys pay for their way to work.

   
   
   
   
4. Wahlin Scott B

   
   7/6/2011 8:07 PM

   I got a vehicle allowance for the past 7 years and drove my own car to work. Things are so tough this year I took it out of the budget along with my cell phone allowance. It does not help much, just symbolic.

   
   
   
   
5. Keith Pegg

   

   0 posts
   
   7/6/2011 8:07 PM

   Most clubs will not go for it but did work one time, they taxed for superintendent's use and he billed them for the storage at night, came out a wash in the end.

   
   
   
   
6. Ashton Alan W

   
   7/7/2011 11:07 AM

   freon said: Alan,
   
   I am taxed on cents per mile. I turn in my mileage sheet with every paycheck. I will have to look into this more closely since my personal miles are only 8000 - 9000 per year.
   
   Jeff Whitmire, CGCS
   Golf Course Superintendent
   Williamsburg Club
   Williamsburg, VA

   
   
   Jeff,
   
   From what I read on Publication 15-B, the total mileage needs to be more than 10,000 which includes the personal use... From the work I've done so far, I'm going to recommend to my club that we use the lease value method.

   
   
   
   
7. Ashton Alan W

   
   7/7/2011 11:07 AM

   troygolf said: Anything in the fringe benefit category should be appreciated. A vehicle allowance per month with proper taxes taken out on your paycheck is the best scenario. Many guys pay for their way to work.

   
   
   I don't think there's anything in my original post that would suggest that I'm unappreciative... quite the contrary! I'm only asking for input on the method to use, as we are a small club (without a GM) so I've been asked to set this up through our Admin. Manager. It beats driving my V10 Excursion each day, by far!

   
   
   
   
8. Ashton Alan W

   
   7/7/2011 11:07 AM

   keith8 said: Most clubs will not go for it but did work one time, they taxed for superintendent's use and he billed them for the storage at night, came out a wash in the end.

   
   
   I might look at that... right now, I'm leaning towards having them tax the whole benefit (which is minor, as the truck isn't worth much) which would mean not having to track the personal use miles any longer.

   
   
   
   
9. McCallum David K

   
   7/7/2011 12:07 PM

   My mechanic drives our club truck as I choose to drive my own vehicle. He is charged cents per mile but since the truck is an '07 model will have our comptroller look at the lease value angle. It may be better for him as well

   
   
   
   
10. Jeffrey Whitmire

    

    0 posts
    
    7/8/2011 2:07 PM

    Alan,
    
    Thanks for the information. My total mileage (work and personal) does exceed 10,000 miles per year so maybe that is why it is calculated that way. I plan to check with our CPA.