Company Car Recordkeeping
2019 – 08/12 Does your business provide company cars to owners and key employees? This perk provides substantial valuable benefits for those provided with cars, as well as tax deductions for employers. There are complex rules for valuing the personal use of the cars. We can help you with the details. Be aware there are recordkeeping requirements. Employees must keep a diary or records with information about the employment business use of the auto (time, place, mileage, business purpose). Total mileage minus business mileage will yield personal mileage, the value of which must be treated as taxable fringe benefit compensation income. Contact us with questions.