All Hokie, All the Time. Period.

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RTFC

Joined: 8/8/03 Posts: 4048
Likes: 1495


I understand your premise


I just think it makes it overly complicated. Unless you file a Business Schedule C (whole different ballgame if you run your own company), why all the deductions/paperwork? Some compensation is taxed, some isn't. You have to keep a record of business versus personal mileage. If you are audited, we have to pay somebody to review all that, etc. One of the reasons your company does it that way is to cut out paperwork involved with exact reimbursement, why should the government be burdened with tracking that?

I get that you don't want to pay tax on "compensation" that is treated as reimbursement in other companies - and if you have high unreimbursed expenses the new tax law may affect you negatively.

IMHO it is all smoke and mirrors.

You are paid X compensation for Y job. That can include additional compensation for car expenses or not. In your scenario maybe your company is stiffing you - not paying enough to cover expenses required for the job. Now maybe they think it SHOULD be enough to cover expenses. Do you (not personally you) live a greater distance away from the sites you have to visit because you enjoy the area better? Do you drive a nicer car? with lower MPG? Why should you get a break for your choice?

IMHO all compensation should be taxed up front (actually I'd rather everyone have to pay estimated taxes quarterly so they actually see the money go out, but that can't happen due to collection issues) You decide if that compensation is adequate for the job you do based on what the market will bear. There are too many ways to play with the numbers that don't produce any value, and increase the opportunity to cheat (not suggesting you are)


(In response to this post by MP4VT2004)

Posted: 02/13/2019 at 10:19AM



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Current Thread:
 
  
CPA: What % of your clients are actually paying more? -- VaAkita 02/12/2019 12:10PM
  Yes 80 percent paid less in taxes -- capitals1 02/12/2019 1:12PM
  You don't sound snarky. -- MP4VT2004 02/13/2019 12:50AM
  I understand your premise -- RTFC 02/13/2019 10:19AM
  That's not how I understood it -- RTFC 02/12/2019 4:26PM
  Sorry, I didn't explain it very well. -- MP4VT2004 02/13/2019 12:57AM
  Media spinning it ** -- DaveVT 02/12/2019 12:36PM

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