I was offered an option to get a car allowance when I was hired on a year and a half ago. Last year, I bough a new truck to use for this purpose. I get an allowance plus a mileage rate that is about half of the federal amount.

Truck $30k
allowance $500/mo
mileage rate ~.25/mile
average monthly miles 3200

I do some personal use, but I've put probably 19000 of the 20k miles on it for work (I drive another car sometimes too). I bought it March of 2017.

I file itemized. I think there's a 2% threshold for writing off expenses. Is there anything I can do to save on my taxes for this vehicle?

  • 3
    I think that writing it off and getting an allowance is double dipping.
    – RonJohn
    Commented Mar 21, 2018 at 3:59
  • 1
    Is your allowance included in Box 1 of your W-2?
    – Ben Miller
    Commented Mar 21, 2018 at 4:05
  • The allowance is not included in box 1. Commented Mar 21, 2018 at 11:21
  • If the mileage write off is double dipping I can see that not working, but the fact that I had to purchase the vehicle to qualify for the policy--does that mean the purchase can be written off? Commented Mar 21, 2018 at 16:23
  • 2
    @RonJohn Not automatically. I think he just has to show that his expenses for business use of the truck exceed his reimbursement, and then he is allowed to deduct the excess amount. See IRS Form 2106, you list your expenses, then subtract the reimbursement, then deduct the excess.
    – user71659
    Commented Mar 21, 2018 at 17:23


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