The current administration won't only "stick it to the man"... The sticking is now rolling downhill.... For eighteen years I have paid my staff an auto allowance. It was a perk. They get to drive their own automobile and I don't have to maintain a fleet of company cars. It has been a win-win..... Our CPA has told us that now we have to tax our people for their auto allowance..... I have said it since day one. When screwing me doesn't fund the federal spending spree, the crap will roll downhill.... And I offer example #1.
The liberals aren't smart enough to figure out that the taxpaying American Workforce is to Uncle Sam what Lake Mead is to California . . . at least not until it's in their rear view mirror. That's the only vantage point from which they can see anything with clarity.
Insurrectionists and traitors aren't smart enough to realize that this change occurred through the Republican's "Tax Cuts and Jobs Act, signed into law in December 2017." You damn seditionists really, really need to think about taking at least an iota of responsibility for the numbskulls you keep electing. I'm not blaming Randy, although he too faults the current administration. I'm sure he has little understanding of tax law and that is why he hired a CPA. His employees however, might want to consider the following advice: Employees affected by this tax change may approach employers about this potential impact on their bottom line and push for a new or revised reimbursement policy to recoup these "tax losses." From the IRS In Notice 2018-42, issued on May 25, 2018, the IRS modified Notice 2018-03, which provided the optional 2018 standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business purposes. Notice 2018-03, in December 2017, identified a standard mileage rate for 2018 of 54.5 cents per mile for all miles of business use (business standard mileage rate) that taxpayers were to use, including to deduct unreimbursed employee travel expenses as a miscellaneous itemized deduction under Section 67 of the tax code. Notice 2018-42 modifies Notice 2018-03 in light of the Tax Cuts and Jobs Act, signed into law in December 2017. Because the tax legislation suspended the miscellaneous itemized deduction under Section 67 for unreimbursed employee business expenses from 2018 to 2025, the notice explains that the standard mileage rate will not apply to those expenses during that period. As a May 2018 post from law firm Nexen Pruet explains: In the past, employees who were not reimbursed for business mileage-related expenses could deduct those expenses from taxable net income. The unreimbursed mileage deduction was allowed along with other "unreimbursed work-related expenses" where all unreimbursed work related expenses in excess of 2 percent of gross income would be deductible. Outside sales employees, for example, who logged significant mileage on their vehicles but did not get reimbursed by their employer could potentially get a deduction for those mileage expenses on their personal taxes. However, the Tax Cuts and Jobs Act in effect for the 2018 tax year eliminated many itemized deductions, including unreimbursed employee business expenses. Employees affected by this tax change may approach employers about this potential impact on their bottom line and push for a new or revised reimbursement policy to recoup these "tax losses."
Joe's right . . . sort of. The Tax Cuts and Jobs Act did eliminate a lot of itemized deductions, but gave most of us much larger standard deductions instead, thus radically simplifying tax filings for most individuals who previously itemized, and producing "found money" for those who didn't. The Tax Cuts and Jobs Act did not eliminate the ability to write off the auto allowance, but the radical increases in costs of vehicles, parts, oil and gas, etc which Joe Biden ushered in have made the allowable deduction so much less attractive that workers who previously enjoyed that perk are now not as fairly compensated, and are feeling the squeeze. But MD, here's reason for some level of optimism, however tempered that may be.
Fact is… Joe is right. I got the call from my CPA and put the connections together in my own mind and spouted off my big mouth before I did my own research. But fact is, and my history of posts will show, I do not give quarter to any political persuasions when it comes to spending my hard earned money. Fact is, they need active, productive sources of income to fund their spending addictions. I do the work and they do the spending. None are immune from my ire… I’ll check out your link, TC. Thanks
I am shocked and a bit heartened that you two can admit this. This is uncommon behavior for this forum. I'm just not used to it. It is usually slash and burn. I think the lesson here is not to knee-jerk a response without knowing the facts and just assuming that all of your partisan opinions fit neatly into a package tied with a bow. In this case, you assumed that any and all taxes are the result of Democratic legislation. You would be surprised how it only took a few seconds to look this information up. I knew that even when these IRS changes occur, they take years to implement, and Biden hasn't been in office all that long. So, I suspected the current administration had nothing to do with the change in tax policy.
If I'm reading @Mopar Dude post correctly, the auto allowance has nothing to do with the Tax Cuts and Jobs Act (that did eliminate certain itemized deductions but that is not what we are talking about here). If an employer gives workers an auto allowance, that has been considered taxable income for many years. I've seen the accounting end of it at one job: at year-end that company would cover the taxes owed on any car allowances given to employees (they chose that method instead of passing the costs along to the workers). There is an alternative-mileage reimbursement. That is not treated as taxable income (it's a business expense for the employer). The downside is that method requires more work for the business (including keeping logs). See the link below for more info: https://companymileage.com/mileage-reimbursement-vs-car-allowance/
Here is an article from 2002 where the car allowance was already taxable https://www.shrm.org/hr-today/news/hr-magazine/pages/0902hirschman-supp.aspx I'm not sure how far back the law goes but it has been on the books for a while.
Don’t be shocked Joe . . . I’ll back down when I’m wrong. You just haven’t caught me in that situation often enough for you to get used to it.
