3 ms·
one interesting aspect of this is that workers often need to maintain capital goods; equipment to do this 'shadow work' - if you want a job in most parts of th
by lsc 15y ago
one interesting aspect of this is that workers often need to maintain capital goods; equipment to do this 'shadow work' - if you want a job in most parts of the country, you need a car. But guess what? that car isn't tax deductible, even if you only use it to commute to and from work.
The interesting bit here is that some companies, especially here in silicon valley, seem to be putting effort into doing more and more of this 'shadow work' for you and thus paying for it out of pre-tax money. Google's free food is the prime example, but nearly every large silicon valley employer not only will pay for public transit out of pre-tax monies, but will also provide shuttles from the train station to the office.
A company can also provide a 'company car' but, well, the tax implications of that get complicated. If you get audited and you didn't keep a careful log of personal travel, (and commuting to and from work is personal travel) and pay income tax on the miles you used for personal stuff? you are in deep trouble; this is why I own my vehicles outside of my corporation; I get reimbursed for business-related miles by the business and handle gas and maintenance out of post-tax dollars.