If its 50miles from the shop and 35 mile from their house then they are not taxed at all for it. It's a win win, we save on wear and tear, fuel, etc and the tech saves what it would have cost him to drive a personal vehicle all the way to the shop, plus the get to leave their house a little later since they don't have to drive all the way to the shop to get the truck first. Where not charging them or deducting from their check for the actual cost the incur driving the truck. They are just paying taxes on it. So quarterly we add up depreciation, total fuel, scheduled maintenance, etc for each truck/driver. We then compare the person vs business use mile and they are taxed on their portion of he use. So say at the end of the quarter that number adds up to $5,000, and 25% of the miles were personal. Then $1,250 is reported as the benefit, use 30% tax bracket for easy numbers and the tech has to pay $375 in taxes. That $375 is much less than what the tech would have spent on fuel to get to and from work in his own vehicle. This also allows us to expense the cost they incur as a legitimate business expense. With out taxing the driver you can not write off their personal use, the IRS needs to get the money from someone. The IRS also says we can not include non scheduled repairs in the portion they pay. So if we spend 3k on a major repair then we can not include a portion of that as the benefit. Also the IRS allows a flat $/mile rate instead of adding depreciation, fuel, maintenance etc such as how you can do to write off business use of the vehicles. But doing it by actual costs is much more beneficial than using the flat rate.