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Old 08-02-2022, 09:16 PM   #51
bboswell
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Quote:
Originally Posted by Mike D View Post
It rarely is as good as it sounds for the employee but is great for the company.

$700 payment only buys a low $30k vehicle if you finance taxes and fees.

Depending on the amount of insurance coverage required add another $100.

That only leaves $200 a months for gas. Iím assuming that he will be driving a lot so in a truck $200 in gas wonít get you far.

Plus you just signed up to go into debt. No thanks.


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You spell it out well but he will be reimbursed for tires and repairs.

I still donít see it as a good deal though
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Old 08-02-2022, 09:27 PM   #52
philcam
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I like to buy US made when possible, but it also depends on the product.

Some Made in USA is just absolute junk. On has to look no further than RVs. What a race to the bottom to produce the crappiest product and charge the most.
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Old 08-02-2022, 09:38 PM   #53
jgard2522
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Originally Posted by txoutdoorsman24 View Post
Negative ghost rider. Mine is dam sure taxed every month!!!


My allowance is non tax as well.



ADDED** Mine is technically a mileage reimbursement not allowance

Last edited by jgard2522; 08-02-2022 at 09:42 PM.
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Old 08-02-2022, 11:03 PM   #54
cantexduck
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He will not be paid mileage. Reimbursed for fuel , tires and maintenance. So he won’t be able to write off miles if I understand it correctly. Doesn’t sound like a great gig to me. Depending on his type of work you can work over a truck in 3 years pretty good and it’s value is next to nothing. I have a company issued truck and I love it that way , everything is covered with my fleet card or company credit card. We drive in some pretty rough places though , rock quarries.

I also have a personal truck that is used 100% for a business I own .
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Old 08-04-2022, 05:20 AM   #55
SelfGuided
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#1 - You have to show 2yrs allowance to offset a payment, i.e. the payment will increase his debt ratio : https://selling-guide.fanniemae.com/...-as-income.htm

#2 - Taxability, CPA, etc. are useless when it comes to mortgage guidelines.

#3 - A 33% DTI is well within the vast majority of loan guidelines (some at 43%, some go to 50%, and FHA will often allow 56.99%).

The simple approach, have him ask his loan officer if $1,000 added to his debt if he still qualifies. It should take them less than 5 minutes to determine.
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Old 08-04-2022, 05:29 AM   #56
SB09
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Quote:
Originally Posted by txoutdoorsman24 View Post
Negative ghost rider. Mine is dam sure taxed every month!!!
Same for me. Mine is taxed the exact same as my regular income.
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Old 08-04-2022, 06:38 AM   #57
SHSU18
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My allowance covers my note with a little extra for insurance which I will have regardless of the job or not obviously. I also have a fuel card which is great during hunting season. Overall I view it as a win win.
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Old 08-04-2022, 08:42 AM   #58
manwitaplan
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Quote:
Originally Posted by txoutdoorsman24 View Post
Negative ghost rider. Mine is dam sure taxed every month!!!

It depends how they do the allowance. If rolled into your check then yes. If paid separate then no.

Also I was fortunate to have a great accountant at a younger age when provided a company car allowance. Here is what you can do or should do. You take your total mileage for the year X the government rate and get that number. You can deduct your allowance and probably a percentage for personal use then write off the rest. 1000.00 a month may not go very far with note, insurance, gas, and maintenance.

The mileage IQ app is a good one for record keeping.


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Old 08-04-2022, 10:09 AM   #59
Hockley
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As others have said it is taxable. I get $1,000/month and I do NOT get reimbursed for maintenance or gas so he has a much better deal. We have a "policy" of what the truck must meet, but I assure you mine does not fall within the policy.

Ignore the Ramsey followers, a truck you use for business is NOT a bad investment. Plus it could be sold the day he doesn't need it with the way used vehicle prices are right now. Just don't go off buying a new King Ranch or something like that...
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Old 08-04-2022, 10:18 AM   #60
Throwin Darts
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Quote:
Originally Posted by 175gr7.62 View Post
Thanks Randy.

My concern, for the sake of round numbers, is that say his debt is 2000 and his income is 8000, that gives him a DTI of 25%. Adding $1000 to both the numerator and denominator of that equation moves the DTI to 33%, so it isn't truly a wash as far as the banker man is concerned.
Shouldn't he also be making more money with the promotion vs not taking it?

IMO if you pass on a promotion to buy a house you're doing it backwards.
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Old 08-04-2022, 01:34 PM   #61
powderburner
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I will bump it again.

Insurance is huge. here. Depending on what he does most plants want $1M policy,
If he takes customers for a ride in his truck for work his personal insurance may not cover any incidents since it is work in a personal vehicle.
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Old 08-04-2022, 01:38 PM   #62
Bill M
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Quote:
Originally Posted by Tex_Cattleman View Post
It WILL cause a debt/income ratio issue. Per Fannie Mae guidelines, to be used as acceptable stable income, it must be received for 2 years.

Love,
Trey Powers
Your TBH Mortgage Lender
Listen to this man. When my wife helps a client buy a property, she advises not to buy anything on credit until after closing. I would think your son's employer could help get past the home purchase.
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Old 08-04-2022, 03:04 PM   #63
30-30
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Could he rent a truck for the time being without screwing up his mortgage process?

Or, asking the boss to postpone the new truck requirement a few weeks could be the least headache.
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Old 08-04-2022, 03:57 PM   #64
Hawkins
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I get a 1500 dollar a month vehicle reimbursement, non taxed. I had my employer send me a print out of proof of income and gave it to my banker when I bought some land.

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Old 08-04-2022, 08:19 PM   #65
Burnadell
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Quote:
Originally Posted by Southern Horns View Post
My allowance isnít taxed, if it was definitely not worth it.
You have this wrong. It is not the company that decides if it is taxed. The IRS decides, and vehicle allowances ARE taxable income. Your company may not be withholding taxes, or they may not be putting it on your W2, but the IRS considers it as taxable income.
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