Tax Change Prompts Companies to Consider Company-Provided Vehicles vs. Reimbursement
The Tax Cuts and Jobs Act (TCJA), which became law on Jan. 1, 2018, eliminated the ability to deduct unreimbursed employee expenses, including eligible vehicle expenses, on personal income tax returns. Prior to the tax law change, if employees itemized deductions, they could deduct unreimbursed business expenses on the amount that exceeded 2% of their adjusted gross income.
“We’ve seen a flood of requests from smaller companies because the new tax change is affecting many of their salespeople and top executives and they are looking for an alternative,” said Todd Welle, General Manager of Business Leasing Services at Merchants Fleet.
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