100% compliance

[Pacun]

If there is someone who practices 100% compliance where will you enter this on 1040.

One noon in February, president Obama had a desire for a hamburger (seems personal to me), he jumped into his employer provided car and went to buy his lunch. This is what an article read:

"Nestled at the corner of a strip mall at Margarita and Winchester roads, Five Guys Burgers and Fries is one of the Inland Empires more notable burger joints.

The Virginia-based burger chain received instant national fame when President Barack Obama made a surprise visit to one shortly after taking office."

Imagine for a moment that he was the president of a large company. Where would he report the mileage on his 1040?

How about when the company gives you a car and you have to go to your office first? This is commuting miles to the employee. Does he needs to report those miles on his 1040? Remember that these employees have cars because they are employees.

[ILLMAS]

I was part of an IRS audit back in 2009 and here were the arguments:

Company vehicle expenses for supervisors and other key employee who do not have a fiscal office to report to, was allowed 100%. Employees do not maintain a mileage log, all the cars and vans have the company logo. (Employees do take the vehicles home and visit different offices directly from home.)

Auditors position: No change

Officers vehicle expenses are being deducted 100%

Auditor position: Since officers take the car home, that was not considered business use.

Adjustment: 80% was allocated to business use and 20% to personal use, the amount from the 20% was not allowed and allocated as income to the shareholders 1040.

Us: We did not agree with the auditors adjustment and suggested for the 20% to be reported as a constructive dividend and not as additional wages or other income. Client paid 15% tax on the dividends vs paying a high tax because their high income.

Auditors position: Accepted our suggestion.

[jainen]

>>president Obama had a desire for a hamburger (seems personal to me)<<

Perhaps he was checking on the fry cook's availability to serve on some HEW commission! At any rate, I believe the President has a legitimate business purpose in staging publicity for his role as First Among Equals. And since he telecommutes (that is, his employer does not provide a separate office so his principal place of business is in his home), going to photo-op job site was 100% business and not a taxable fringe benefit.