As an employee, if I use my car for company business and and reimbursed 25 cents per mile by my employer, is my employer still entitled to take the 37 cents per mile deduction allowed by IRS? I’m curious .
Nice link but I don’t think it answers the question.
IANACPA. But your employer should be able to deduct only the $.25 per mile they reimburse you, because it’s not their car. (It actually shows up as an expense on their P&L, so reduces the profit on which they’re taxed; I’ve never seen a corporate tax return but I don’t think they have a Schedule A type thing.) Their only expense is the cash out that they reimburse you.
Also, you can deduct the $.12 per mile difference as a non-reimbursed employee expense under “other deductions” if you itemize deductions. However, to take these deductions, the amount must exceed a pretty hefty percentage of your AGI. Check your 1040 Schedule A and instructions for details.