How to Account for the Personal Use of a Company Car
- 1). Purchase a mileage log book from an office supply store or create a log book by drawing column lines on the paper in a spiral notebook.
- 2). Log the miles driven by date, destination, reason for the trip and number of miles driven. Miles driven for commuting between home and the office are considered personal miles. If you make several business stops in one trip, log the round-trip mileage on one line and include each destination visited.
- 3). Submit the log to your employer at year-end so that they can calculate the taxable fringe benefit to be included on your W-2.
