Personal Use of Corporate Automobile

Personal Use of Corporate Automobile

Download your 2025 Personal Use of Auto Inform

Based on current tax laws, an employee’s personal use of a corporate provided vehicle (PUA) is considered to be a taxable fringe benefit. The following summarizes these rules:

  1. A corporation is required to treat the personal use of an employer provided vehicle as taxable compensation to the employee, subject to payroll taxes and withholding.
  2. You are required to keep adequate records detailing your business use of the vehicle versus your personal use. For determining personal use of auto compensation, we have elected to use a twelve-month period ending November 30th of each year. Your personal use of auto compensation will be based upon activity from December 1, 2024 to November 30, 2025. Please submit to us via email (inbox@reasontax.com) or fax (858-483-7679).
  3. The amount of compensation for the personal use of your vehicle will be determined in accordance with IRS formula and the related IRS fair value lease table.
  4. The amount of compensation calculated for the personal use of your vehicle will be included in 2025 form W-2. Based on the amount of compensation included in your W-2 you are required to withhold Social Security, Medicare, and State Disability Insurance.  However, we will not withhold any Federal or California income tax on the amount of this compensation.
  5. The Federal and State employer payroll tax deposits for the additional compensation will be calculated once we receive the information requested.  Most payroll tax deposits will be remitted to the tax authorities by December 31, 2025.

If you use a payroll service, please print the pdf at the link above and provide the information to your payroll provider.

PLEASE FILL OUT AND RETURN YOUR PUA FORM BEFORE DECEMBER 15, 2025.

If you have any questions, feel free to call the office at 858-483-7500.

Disclosure

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any company names noted herein are for educational purposes only.

All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards.

Investing in securities in emerging markets involves special risks due to specific factors such as increased volatility, currency fluctuations and differences in auditing and other financial standards. Securities in emerging markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments.

An index is a statistical measure of change in an economy or a securities market. In the case of financial markets, an index is an imaginary portfolio of securities representing a particular market or a portion of it. Each index has its own calculation methodology and is usually expressed in terms of a change from a base value. Thus, the percentage change is more important than the actual numeric value. An investment cannot be made directly into an index.

Investing in fixed income securities involves credit and interest rate risk. When interest rates rise, bond prices generally fall. Investing in commodities may involve greater volatility and is not suitable for all investors. Investing in a non-diversified fund that concentrates holdings into fewer securities or industries involves greater risk than investing in a more diversified fund. The equity securities of small companies may not be traded as often as equity securities of large companies so they may be difficult or impossible to sell. Neither diversification nor asset allocation assure a profit or protect against a loss in declining markets. Past performance is not an indicator of future results.

Financial Planning offered through Reason Financial, a state Registered Investment Advisor. Investment advice offered through Merit Financial Group, LLC an SEC Registered Investment Advisor. Merit Financial Group and Reason Financial are separate entities. Tax related services offered through Reason Tax Group. Reason Tax Group is a separate legal entity and not affiliated with Merit Financial Group, LLC. Sean P. Storck CA Insurance Lic#OF25995 and Steven W. Pollock CA Insurance Lic#OE98073

Copyright © 2026 Reason Financial all rights reserved.

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