- Your employer can require you to use your own car for business, either on a regular or occasional basis. In this case, you are entitled to a mileage reimbursement. Your employer will usually pay you a designated amount per mile, according to the standard established by the IRS, to cover the fuel, maintenance, and wear on your vehicle.
- If you use your car for business, keep accurate records to ensure proper reimbursement and compliance with IRS rules. Keep a log of the date, the odometer reading at the beginning and end of your trip and the purpose of each trip. Some companies provide a GPS device that will record this information.
- Using your vehicle for business can affect your insurance coverage needs and rates. If you drive for business every day, your insurance company may require you to carry more liability insurance. However, if you get into an accident while driving your own vehicle for business, it may be covered under your company's policy.
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