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PUCC - Personal use of company car
Old 01-19-2019, 12:46 PM   #1
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PUCC - Personal use of company car

Wonder if anyone has pondered on this. I can use the company car for personal use and have to show as income the IRS mileage rate of 58 cents per mile for 2019. I might have personal use of 4000 miles per year, so I've increased my taxable income by $2,320. At the income tax rate of 22% + FICA at 7.65% + some state tax, my cost is really only 700 bucks or so. Upside is this is increasing my annual income in the Social Security calculation. I can't imagine that the 2,320 extra income per year is going to move the needle much for SS. I'm thinking I should still minimize PUCC and will come out ahead in the long run. Or should I maximize PUCC?

I'm probably WAY overthinking this and appreciate any comments or math wizardry you folks may share.
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Old 01-19-2019, 12:48 PM   #2
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We used to have to report personal mileage monthly. I heard some employees were less than honest on the reports.
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Old 01-19-2019, 12:51 PM   #3
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I have a company car, but I max out my FICA by mid year, so I never think twice about it. I just enjoy the perk.
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Old 01-19-2019, 12:52 PM   #4
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Originally Posted by Bamaman View Post
We used to have to report personal mileage monthly. I heard some employees were less than honest on the reports.
Yeah - I sometimes think I might be the only one that is even close to accurate on this. They do not set any limitations on usage so I could drive it to church, grocery store, pick up grand kids from school, etc to maximize. Didn't mean to imply I'd fudge the numbers, rather just pick wisely which vehicle I use
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Old 01-19-2019, 12:54 PM   #5
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I have a company car, but I max out my FICA by mid year, so I never think twice about it. I just enjoy the perk.
Yup - I used to max out FICA, but switched to Part Time about 2.5 years ago, and yes it is a really nice perk.
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Old 01-19-2019, 12:57 PM   #6
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I wouldn't worry about it. Use the vehicle that's most convenient or fits the needs of the task best. At less than 20 cents/mile,I'd be inclined to use the company vehicle. OTOH, will there be an issue with your job if you got into an accident with it on your time?
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Old 01-19-2019, 01:10 PM   #7
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... and yes it is a really nice perk.
A nice perk indeed!
My company car was a high end Mercedes but was just part of my general compensation. It was never used for business other than getting my fanny into the office. I just paid the taxes.

A (jealous) co worker commented once "yeah, but you're going to have to pay taxes on that lease payment" to which I replied, "So, I get to drive a $70,000 car with paid insurance and gas and it's going to cost me maybe...$4K? Oh, Ok"
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Old 01-19-2019, 02:36 PM   #8
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If a person maximized the usage enough so that another vehicle is not needed (ie sold). then it seems to me it becomes similar to a cheap lease, and a good deal.
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Old 01-19-2019, 03:21 PM   #9
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Use the heck out of it. I used to get a stipend. It didn’t fully pay for my leases, but it made them highly subsidized. Some guys would keep their cars as long as possible and try to come out ahead on their stipend. I just looked at it as a really nice perk. I loved driving a new car. I could get leases on nice Buick’s for a bit less than my stipend. So basically I was driving for the cost of the taxes on my stipend. I was good with that. Not to be too much of a spendthrift, but you got to get something you like out of your job and, for me, driving a nice new car ever two years was something I took advantage of and was happy to do it.
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Old 01-19-2019, 05:41 PM   #10
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We reported PUCC monthly. Honor system, but mega motors applied an imputed income formula so it was not a freebie like everyone assumed. I put about 24k total miles with personal use comprising ~15%.
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