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How to Use Small Business Tax Deductions

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As a small business owner, there are many costs and opportunities for savings that you should be aware of. Optimizing your balance sheets to deliver profitability becomes much easier when you know how your way around small business tax deductions. Successfully running a small business means having a clear overview of the expenses that you encounter throughout the year. Come tax time, it is important to understand that there are many small business expenses that the United States federal government has determined to be tax-deductible.

Which Costs Can I Claim When Filing my Taxes?

There are many different small business tax deductions available for small and medium-sized companies. Areas such as rent, inventory, payroll, and utility costs are some examples of small business deductions that you can claim when you file your yearly taxes. It is important to understand how to use small business tax deductions so that you can be sure you are not overpaying for normal outbound expenses that can be written off.

Taking advantage of small business deductions is an important opportunity that every American business owner should be aware of. Though it is very challenging and time-consuming for many small business owners to file their yearly taxes, the government has created a policy framework that offers special benefits for small business tax filers. In this article, learn more about popular small business tax deductions and importantly, how to use small business tax deductions for your business-use automotive transportation.

Main categories for small business tax deductions

  • Advertising and Marketing
  • Bad Business Debts
  • Business Casualty Losses
  • Business Insurance
  • Business Interest
  • Business Meals
  • Business Use of a Car
  • Charitable Donations
  • Foreign Earned Income Inclusion
  • Depreciation
  • Education
  • Home Office Expenses and Supplies
  • Investment Interest
  • Legal Fees
  • Moving Expenses
  • Phone and Internet Expenses
  • Rent
  • Retirement Expenses
  • Travel Expenses
  • Salaries and Benefits

What Are Small Business Tax Deductions?

Small business tax deductions are available for expenses that the United States Internal Revenue Service (IRS) has allowed to be subtracted from your taxable income. In effect, small business deductions help small businesses save money. The IRS allows small business deductions for expenses that are considered ordinary and necessary. The main purpose of small business tax deductions is to help local, regional, and small online businesses to be less penalized by their state and federal tax burdens.

How Do Small Business Tax Deductions on Business Expenses Work?

When it comes time to file your state and federal taxes as a business owner, there are two main ways that you can choose to claim tax deductions: take the standard deduction or create an itemized deduction based on your accurate expense reports. If you are interested in taking advantage of all the benefits of small business deductions, then it is important to know that itemizing will consistently lead to better outcomes.

Itemizing tax deductions requires that your business keeps a neat, clear, and accurate account of all your business expenses throughout the year. It is essential that you present clear and accurate records to the IRS or there is much less of a chance that you will receive the full deduction amount you are eligible to receive in each category. To file small business tax deductions, you will need to create a list of all the ones you are looking to receive and fill out a Schedule A form to go alongside your tax return.

In case the IRS decides to audit your business, your Schedule A form and up-to-date, accurate tax return will be the documents needed to defend your position. To successfully complete your taxes, you will need to have access to all the information connected to your employee payroll and benefits payments, business income documents, property tax documents, and many other pieces of sensitive financial and institutional information.

How to Take Advantage of the Business Use of Car Small Business Tax Deduction

Even if you run a small business from your home, there are small business tax deductions available for the personal vehicles you use for business purposes. However, if you use a car purely for business purposes, then it is possible to deduct the vehicle’s operating costs from your taxes. If you use a business car for personal and business driving, then it is only possible to take deductions for the approved business expenses related to your car.

When tax expenses for your business car are due, there are two ways to calculate the amount owed. It is important to understand how each of these choices is calculated so you can figure out which method is a better choice for your own situation:

  • Standard Mileage Rate Method: To use this method, you will need to have a clear record of all the miles your car has driven for business purposes and multiply that number by $0.575 per mile for your 2020 taxes or $0.56 for your 2021 returns. If you drove 50,000 miles for business in 2021, you would receive a deduction of $28,000.
  • Actual Expense Method: For this method, you will need to keep accurate records of all your car-related expenses for the year including gas, oil changes, repairs, tires, insurance, registration, and lease payments. Next, you will multiply these amounts by the percentage of business use your vehicle had. So, if you drove 10,000 miles, spent $10,000 on repairs, tires, insurance, gas, and used the car 60% for business, you would get a $6,000 tax deduction.

Small business deductions for automotive expenses are a fantastic way for your small business to save money on your car rental subscriptions. SIXT is your go-to solution for mobility services. Download the SIXT app and unlock a world of business use car rentals. We are your trusted mobility services provider, and we have a wealth of options for securing the transportation options you need, completely on demand and available 24/7, 365 days a year, around the world.

SIXT is Your Trusted Small Business Mobility Services Partner

As one of the world’s leading mobility service providers for small businesses and corporate enterprise clients, SIXT provides an innovative global car rental subscription service matched with industry leading customer service. Our reasonable and affordable rates on premium vehicles make it much easier for your company to design a rental subscription with high-class premium vehicles more cost effective than you might imagine.

Our broad international fleet of rental solutions includes compact cars, premium sedans, family minivans, full-size SUVs, sports cars and nearly every type of car available. Many of our branches also provide a large range of trucks and utility vehicles for more rugged commercial applications. If you are searching for a small business mobility services partner, be sure to check out one of our friendly and modern orange branches.

SIXT: From Taxi Services to Tax Expense Advice

SIXT is proud to offer car rentals alongside other mobility service solutions such as taxi services, carpooling, and chauffeur services via the industry leading SIXT app. Sign up and start saving on business use car rentals today. Our flexible rental subscription service empowers small businesses to make use of business cars in a way that is convenient and affordable. Design a rental subscription plan that matches your needs and expectations.

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Fleet management strategies and services to inject dynamism into your business

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Having an efficient, reliable, and cost-saving strategy to solve your mobility needs is crucial. At SIXT, we have ample experience working with the most varied corporate clients. In this article, we share with you our extensive know-how on fleet management. It is important to consider some key aspects that will help you develop an effective strategy, such as understanding the types of costs that companies face in traditional corporate fleet management and using SIXT’s approach that saves time and money thanks to its innovative conception of mobility and state-of-the-art technology.

Fleet management, how to develop the right strategy

What is fleet management? What activities need to be coordinated and taken into account by a fleet management system? Fleet management for a company includes the development, organization, and implementation of all the processes required to manage a corporate fleet. This involves all the steps between the acquisition of vehicles, their maintenance, and their disposal. A successful strategy will minimize costs, ensure compliance metrics, increase productivity and efficiency, and, of course, will ensure the satisfaction of employees and team members. A point that companies often underestimate is that mobility needs change. The right fleet management strategy will develop ways to cope with uncertainty and build resilience.

The first step to develop an efficient strategy and choose the right vehicle management system is to know your mobility needs and internal capabilities. Some key aspects that companies need to take into consideration:

  • Scope of operations (local, regional, international)
  • Type of transportation (passengers, merchandise, heavy load)
  • Driving-frequency (daily, weekly, irregular terms)
  • Bureaucratic capacity (do you have a person that can manage the fleet as a full-time job?)
  • Available capital and lending options (together with its opportunity costs)

Understanding fleet management costs

Costs are one of the most important topics concerning corporate fleet management. For anyone new to the topic, the main expenses that come into mind are the acquisition costs. These are indeed some of the highest costs that a company has to calculate, but they are by no means the only ones. Costs in fleet management can be broadly divided into two types: capital costs and operational costs.7

Capital costs

Capital costs include:

  • Acquisition cost: that is the cost of obtaining the vehicle, whether through purchase, leasing, or rental.
  • Vehicle financing: ongoing payments and interests related to the possession of the car, truck, or any other vehicle.
  • Depreciation: the decrease of value that a vehicle has from the moment of its acquisition. This value is often underestimated by companies and should be taken into account in the planning of a successful fleet management system.

“Depreciation, or the degree to which a given vehicle’s value will drop over time, is a motorist’s highest ongoing expense. Depreciation now accounts for an average of 36% of annual ownership costs […] The average vehicle drops 49.6% of its original value after five years.”

– Jim Gorzelany, Forbes i

Operational costs

“Operating costs for fleets are often within the top five spending areas for an organization.”

– Deloitte ii

Operational costs come from the continuous use of any vehicle. As mentioned by the Deloitte study, these can add up to constitute a big part of a company’s expenses. Finding smart ways to reduce operational costs is a big task of a company’s fleet management system. Some of the most important operational costs are:

  • Insurance: different types of insurance like insurance against theft and protecting from costs from accidents.
  • Maintenance and repair: vehicles need continuous maintenance and repair.
  • Fuel costs and tolls

SIXT’s innovative approach to fleet management services

As seen until now, under the traditional method, fleet management can be a full-time job, especially as the company grows in size. SIXT has developed a corporate vehicle rental service tailored to serve the most diverse and spontaneous needs that an ever-changing business landscape implies.

  • Different rental modalities for ever-changing situations
    Our business model is based on offering different modalities of car rental instead of the rigid schemes traditional in other car-rental services. With one account, our clients have simultaneous access to these different types of rental. Easily select among short and long-term rental plans, vehicle subscriptions with a monthly cancelation policy, or opt for our comfortable driving service.
  • A wide range of vehicles that get the job done
    Instead of committing to one vehicle for your fleet, enjoy the flexibility of having an entire fleet at your disposal. Or long-term and car subscription modalities allow you to change vehicles without any bureaucratic hassle. Promptly react to changes in your needs and bring agility to your business.
  • Decrease costs at every step
    Our business model is based on the idea of “using instead of owning.” With SIXT, you only pay for the service that you need and nothing more. Our rental options allow you to free capital and avoid maintenance, repairment, and depreciation costs, as well as avoid losing money in fixed insurance and membership fees. Moreover, our efficient system makes management and reporting easier, saving you time and money.
  • Ensure reliability in uncertain times and situations
    Even if your vehicle needs to be repaired or something happens on the way, our fleet management system ensures that you can get a replacement vehicle right away. No more losing your mobility when the vehicle is in the repair shop.
  • We are wherever your business takes you
    Drop your car in San Francisco and pick a new one in New York. Our vast network of branch offices allows us to be there for you wherever your business takes you. We are present in over 120 countries, in all major airports and train stations.
  • Eco-friendly approach to mobility
    By only using the vehicle when you need it instead of owning it, we ensure that the natural resources are used more efficiently. Our planet needs us to do business in an eco-friendly way. You will only find vehicles that meet the strictest environmental standards in our fleet, as well as hybrid and electro models. This, in turn, will help your company save money in operational costs. Everyone wins.
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State-of-the-art technology in the management of your company fleet

With SIXT, our innovative car-rental concept is complemented with state-of-the-art technology that ensures the most efficient fleet management implementation. Whether you manage a couple of cars or you are looking for a complete truck fleet management system, your corporate SIXT account will serve as the command center from which you will have a total overview of anything concerning your corporate fleet. With our smart e-billing system, all your invoices are generated digitally. You can easily use the company’s bank account to pay for different rental services. All your data will be securely stored so that your employees have access to their vehicles with minimum paperwork. With SIXT, you will have immediate access to ready-to-print reports with attractive data visualizations that are ready to be presented in your next strategy meeting. All the tools that you require for the most efficient fleet management are there for you without any additional cost.

Summing up

An efficient fleet management system is mandatory to make companies more competitive. Before selecting a company fleet modality, make sure that you analyze your mobility needs and plan accordingly. It is necessary to consider all mobility-related costs. Usually, companies make the mistake of over-emphasizing some acquisition costs and neglecting other costs related to depreciation and operative costs. At SIXT, we have developed entirely innovative solutions for corporations. Our concept is based on “using vehicles instead of owning them.” Our services are designed to reduce costs and the complexity in your corporate fleet management. We have also developed the most modern technological applications to ensure swift implementation. If you have any questions, our customer support team is happy to assist you.

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i Gorzelany, Jim. “Burning Money: Vehicles That Depreciate the Fastest, and Those That Hold Onto Their Value Best,” Forbes. Online available at: https://www.forbes.com/sites/jimgorzelany/2019/11/07/burning-money-vehicles-that-depreciate-the-fastest-and-those-that-hold-onto-their-values-best/?sh=20a620b35f4a
ii “Fleet Leasing and Management in North America: Key enabler for the future of mobility”, Deloitte. Online available at: https://www2.deloitte.com/content/dam/Deloitte/us/Documents/consumer-business/us-cp-fleet-leasing-and-management-in-north-america.pdf

What are the benefits of small business car rental?

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Until recently, long-term car rental used to be taken up by international corporations and large companies. This method is becoming increasingly popular among small and medium-sized businesses—and not without reason! The times of having to own a vehicle seem to be far behind us. Buying a car tends to strain the smaller and medium organizations financially and may not always be commercially viable. Are you a small business? Instead of buying a car, you can consider a long-term rent. Find out how this form of car rental can be beneficial to your company!

First things first. What is small business car rental?

Long-term car rental allows renting a car for a specified time, whether one month or one year. The minimum rental period is 30 days, and there is no limit to the duration of the contract. There are times when small business car rental makes more sense than buying or leasing a car. Whether it is due to the seasonality of the small business (like operating only in summer), a significant employee turnover, or the need to maintain the cash flow, car rental comes with multiple benefits. Find out how it works and what are the main advantages below.

How is small business car rental different from leasing?

The two are very similar on many levels. Leasing and long-term rental are based on a car lease for a period indicated in the agreement, and in both cases, the car remains the property of the leasing/rental company. However, there are some crucial differences, too. The first one is that small business car rental relieves the car user from paying the operating costs. All the expenses— such as insurance, repairs, and maintenance—are paid for by the rental company. Thus, long-term car rentals are recommended for companies that prioritize ready-made solutions and ease of use. The second difference between long-term rental and leasing lies in the issue of car ownership. After the termination or expiry of the contract, the car is returned to the car rental or dealership. Under the leasing conditions, the vehicle is an asset of the company. Considering the loss of value of the car and the costs related to its exploitation throughout the leasing period, it is not necessarily an advantage.

On the other hand, renting the vehicle means that the car is only a tax-deductible cost rather than weights as a company asset, giving the small business more financial freedom.

The third difference is complete flexibility when it comes to the duration of the contract. Leasing always stipulates a minimum contract length, but the advantage of a rental is that it allows you to choose how long you want to have the vehicle for!
Now you know what a long-term car rental is, so let’s find out the main benefits!

Five benefits of small business car rental

1. Optimize your costs

One of the most significant benefits of long-term car rental is predicting the operational costs associated with running a car fleet. This allows the small businesses for easier budgeting and financial planning, ultimately simplifying their bookkeeping and strategy. The monthly rental fee tends to be much lower than the one incurred by purchasing or leasing a car and can be included as a business expense, leading to savings on a tax bill. What is more, unlike buying or leasing a vehicle, long-term car rental does not affect its credit score; neither does it freeze the capital or restrict the company’s cash flow. All the above factors considerably reduce the risk of running into financial problems, especially for small businesses with a less stable market position.

2. Deal with less paperwork

Another critical advantage of a car rental includes the convenience it brings. Instead of dealing with all the responsibilities associated with car-owning, all the user has to do is pay the monthly installments, refuel the tank, and take good care of the vehicle. SIXT sorts all the other issues like insurance, car registration, regular servicing, towing costs necessary in case of breakdown, and even the seasonal tire change!

3. Flexibility

Another great thing about long-term rental? The possibility to terminate the rental contract at any time, without incurring high penalties! Many small businesses operate on a seasonal basis, which means there is often no need to pay for a car all year round. Moreover, some have a significant employee turnover and do not require an entire fleet at all times. By renting a car, the company can decide how long they want to rent the vehicle for, be it a month, a season, or a year!

4. Comfort and safety

Unlike large corporate clients, small businesses may not have a number of staff dedicated solely to operations management, and often, the business owner themselves must ensure all deadlines are met. Owning or leasing multiple cars means that any additional responsibilities like keeping the servicing dates and paying for repair costs can lead to headaches and confusion. Long-term car rental takes away all these worries. At SIXT, we take care of the annual car servicing, all the repairs, and ensure the car remains safe to use. This leaves the business owner free to focus on the most important things: running the company.

Aside from optimizing the business costs and increased convenience and safety, small business car rental with SIXT brings much more comfort. Relax and enjoy our unique features:

  • Many extras, such as air conditioning, GPS navigation system, cruise control
  • Ability to access all our services in one place (SIXT rent, SIXT ride in the SIXT app)
  • 24/7 customer service in case of any issues or questions
  • Digital accounting and fleet management
  • E-billing that allows for paperless and digital invoice filing

5. Choose a new model whenever you need it

The great thing about long-term car rental is that the company can tailor the contract to its needs. At SIXT, not only do we have one of the broadest range of cars on offer, but the customers can also request to exchange the car for a different model at any time, at no additional cost!
Finally, once the contract expires, the company is not left with an old car on its hands, which means it does not have to bear the responsibility to sell it at the end of the lease and does not risk the loss of capital associated with value depreciation. If the company still needs a vehicle at the end of the term, it can simply renew the contract and replace it with a newer model. This allows the business to regularly replace the vehicle with a new one, ensuring the highest degree of comfort and safety for their employees. Do not forget that a new and premium car with high-end features can be a great way to motivate your employees!

What are the costs of small business car rental?

The total monthly fee depends on several factors. Apart from the vehicle’s original value, the monthly cost depends on the amount of the voluntary upfront contribution and the duration of the agreement. The only expense borne by the lessee during the contract term is the fuel, as all the other operating costs are already included in the monthly fee. For exact prices, visit our website or SIXT app.

Without a doubt, a long-term rental is one of the most attractive forms of car ownership for a small business. As with leasing, all the monthly installments for a rented car can be classified as tax-deductible costs. What differentiates it from leasing is that this rental method allows the owner of a small business to save money by not restricting the cash flow, maintaining your credit score, and optimizing the monthly operations costs. Another financial advantage is the lack of servicing costs or depreciation risks. Visit our website or the app and book your car with us. Put your fleet in your pocket with SIXT!

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Renting German company cars with SIXT Corporate

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When looking for a corporate car, why not drive the best? German cars offer best-in-class performance and luxury through superior engineering and technology.

Traveling for Work: German Company Cars Offer Superior Style and Performance

In 1879 Karl Benz secured a patent for one of the first internal combustion engines; then, in 1886 he went on to patent his first automobile. Since that time, multiple German car manufacturers have joined the market and their combined efforts have won them a collective reputation that is practically unmatched around the world. Today, German carmakers enjoy ubiquitous brand recognition, specifically as producers of quality, luxury vehicles that have been engineered to perfection, with unparalleled performance and technology. This is what makes German company cars highly sought after.

1. Reasons for Corporate Travel with a German Company Car


There are many reasons for business professionals to travel, and many modes of transportation to get them to their destination. Some work as single ways to get around, such as driving in a company car (for those most fortunate business travelers), and others work in tandem, like airplanes and shuttle services. For businesses that anticipate corporate travel, it is critical that they have a clear sense of their travel requirements. Whether the purpose of travel is to directly impact the business, or it is to support the further development of you or your business team, it is important that companies have access to transportation like company rental cars, or any other vehicle that will facilitate in-person attendance at critical events, including:

  • Business pitches and sales efforts: Despite advances in digital technologies that provide a platform on which companies can conduct business, such as video conferences that allow for virtual pitches, nothing replaces direct eye contact and a solid handshake. Any mode of transportation that puts you face-to-face with prospective clients will enhance your chances of business success and show would-be clients that you’re willing to go the extra mile, so-to-speak.
  • Deal closing: Sometimes it’s not enough to simply add your signature to a contract. Many clients like to hash out deal terms in person, or like to celebrate deal closures with their partners, knowing that signing on the dotted line is initiating an engagement which could be the start of, or continuation of, a years-long relationship.
  • Relationship development: Whether your business relationship is in its nascent stages, or you’re reenforcing a long-term relationship, it is important to cultivate and maintain engagement with business associates. In-person meetings, whether in an office setting or over dinner, are pivotal to lasting success.
  • Tradeshows and conferences: Both tradeshows and conferences are great ways to keep abreast of the industry, even if you’re not contributing directly to the event. They are also excellent platforms for networking within the industry. For these reasons, both employees and employers stand to benefit from the visibility gained when attending industry-specific events.

Additionally, employers or employees may need transportation to classes that are part of an extended learning effort to enhance or develop new skill sets. Or maybe you need a company car for opportunity scouting, or to establish a more cohesive corporate environment by traveling to multiple offices of the same business. These are just some of the many reasons employers or employees may need to travel for work and why they should do it with a German company car.

2. Types of Corporate Transportation

Once the travel requirements of your business are understood, the next step is to calibrate your transportation needs. Work travel takes many forms and, luckily, many are tax-deductible, such as:

  • Airplanes
  • Passenger trains
  • Commuter trains
  • Taxis
  • Subway systems
  • Inter- and intra-city buses
  • Gas mileage in a personal car for work purposes

One of the most effective modes of corporate transportation is through company car rentals, because they provide employees with the greatest flexibility and autonomy. What’s more, car rentals grant professionals with access to vehicles, such as German company cars that make an excellent impression for business purposes but may sometimes be considered an ill-suited choice for a personal family car. However, with the right company car rental partner like SIXT, corporate professionals who need transportation for business travel can gain access to vehicles for long-term or short-term rentals, whether regionally or remotely, such as in instances where business travel requires flying to another region or country. Rather than exhaust company resources to establish a fleet of corporate vehicles, which may also prove impractical for long-distance travel, businesses will want to establish a partnership with a company that is poised to provide the mobility services that meet their transportation needs.

3. Benefits and Sophistication of German Company Cars


As a result of the reputation that they hold for superior engineering and performance, as well as the image of class and sophistication that they create, German cars are desirable vehicles for businesses. There are multiple brands that exist within the German company car category, including:

Their bold and confident slogans mirror the quality and confidence of the vehicles’ designs. And each year the vehicles just get better by adding greater sophistication to their performance: like the constantly improving responsive steering system in BMW, the improved safety granted by the 4MATIC technology in Mercedes-Benz, and the continuously streamlined infotainment technology, as with Audi connect®. All these elements make German cars ideal business rentals. What’s more, their performance and technology ensure employers that their team can safely remain active and engaged in business while on the road—and employees will see their company car as a luxury perk.

German company cars also come in all shapes and sizes, making the range of vehicles offered by these manufacturers comprehensive enough to suit a variety of business travel needs. So, if attendance at a tradeshow means you need space for equipment, German SUVs are engineered to maximize space in intelligent ways. However, if you’re heading out to see a prospective client, the sleek and sophisticated look of many of the German-manufactured sedans makes for a strong presentation. Whatever the occasion, German company cars sit in a class of their own, and when offered through a mobility services partner that operates a likewise superior service, the whole rental car package can facilitate great success for your business.

4. SIXT’s Transportation Options

There is no “one size fits all” plan that can accommodate the requirements of all companies in need of transportation for business. That is why SIXT offers businesses a range of mobility services that can get employers or their employees into one of the many German cars available in our extensive fleet.

SIXT ride car service

When corporate travel takes you far enough afield that a flight is required, or the deal-closing celebration includes a cocktail hour, SIXT ride car service offers luxury vehicles with a professional driver for a shuttle to and from the airport, or to and from evening events. Likewise, our car service can be booked by the hour, working as a professional chauffer service for deal roadshows or other multi-hour, multi-location engagements within a city.

SIXT rentals

Business professionals who have a limited need for flexible and autonomous transportation, and opt for a company car rental, may want a vehicle that relays the quality and sophistication of their work. Or you may simply want to hop behind the wheel of a luxury vehicle. For these reasons, professionals often choose one of the many German company cars in SIXT’s extensive fleet. As is the case with all of SIXT’s car rental services, customers benefit from best-in-class customer service, free cancelations for bookings that opt for payment on arrival and availability in many countries around the world.

SIXT+ company car subscription

A SIXT+ company car subscription provides business professionals cars by the month, with a variety of German company cars from which to choose. The subscription gives businesses the ability to tailor service to meet their specific rental needs; selections can be made for car type, vehicle protection and mileage packages, and extras like GPS. And if the initial vehicle category selection no longer suits the needs of your business, the car can be swapped out for a different one the next month. As with its rental service, SIXT allows car subscription customers to drop off their vehicle any time at the station where they picked it up, even outside of normal operating hours. When a SIXT+ customer does this, it automatically cancels their subscription.

When a business engages SIXT’s range of mobility services to accommodate their business travel needs, they have reliable transportation options at their fingertips. If employees are lucky enough to select from one of the many luxurious German cars available, then, once behind the wheel they’ll undoubtedly benefit from the sophisticated exterior and superior performance that comes with driving one of the musts perfectly engineered vehicles on the planet.

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America’s favorite business cars

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The economy is growing and so is the need for mobility. Therefore, it’s worth taking a closer look at which car brands and models are most established, which are the newcomers to watch, and which are the favorites in the US. In other words: What cars do the people love the most? The car you drive is not only important for personal use, but also an asset for your business. We’ve compiled some top choices for business cars with something for everyone, whether you’re a small business, self-employed, a large company or tradesman.

BEST-SELLING AND MOST BELOVED BRANDS IN THE PRIVATE MARKET

According to business data from Statista, in 2019, domestic player Ford was in the top spot in the US. With 2.3 million units sold, it was the year’s biggest player in the car industry, followed by Toyota and General Motors. But according to the research data and analytics group YouGov the most popular brand is Honda, followed by Toyota, Chevrolet, Ford and Mercedes-Benz. One of Honda’s most popular models is the Honda Accord – a good choice for a durable business car for long-distance business travel. The sedan has been produced since 1975 and is one of the best-selling cars in the US since the mid-1980s. And it has its own record, topping Car and Driver’s annual “10 Best” list 33 times. Honda itself has led the brand charts an outstanding 75 times between 1983 and 2008.

BEST-SELLING PRIVATE CARS: AN INSPIRATION FOR BUSINESS CARS?

If you look at the most-purchased car models in the US, you see some regional differences. People in the state of New York prefer a Nissan Rogue, while people in Michigan prefer the Chevrolet Equinox. If you live in New Jersey or Connecticut, you will probably buy a Honda CR-V, according to car pricing website Edmunds.

Some drivers living the island life believe a pickup is the best choice. According to Edmunds, Hawaiian and Puerto Rican car buyers prefer a Toyota Tacoma for their daily trips. A pickup is also a good choice as a business car if you need to transport equipment or deliver large items. If you are a cabinet maker, farmer or engineer you can be like the island-dwellers and purchase a Ram 1500 Crew pickup as a business car. This also happens to be the best-selling vehicle in Arizona, Nevada, Arkansas and Wyoming.

THE TEAM PLAYER: A MINIVAN IS THE MVP

If you are a fan of the Dodge Grand Caravan you must be quick. After pleasing generations of drivers, the model will not be produced anymore, at least partly because the current trend is to buy an SUV instead of a minivan with sliding doors. An alternative is the Chrysler Pacifica, which US-Italian carmaker Fiat Chrysler has completely renewed, making it an ideal business car model. A minivan is great for transporting all kinds of business teams like sales teams, construction workers or colleagues heading to a conference. Bring everyone and everything you need!

Tried and tested as a taxi model in New York for multiple passengers, the Toyota Sienna is the perfect business car for your team. A renewed version, the Toyota Sienna XL40, has been released; however, prior models of the Sienna, such as the Sienna LE, Sienna XLE, Sienna Limited and SE are still available, but will no longer be produced.

Perfect for the Oceans Twelve gang as well as the Dirty Dozen, choose the Chevrolet Express as a business car. The passenger van is a 12-seater for the complete team! Have transportation for a team outing, or to celebrate the successful conclusion of a big project. The Chevrolet Express 2500 has a wheelbase from 135 inches to 155 inches and 278 horsepower. So, it will bring you everywhere quickly and comfortably without feeling like a van.

Best Luxury Business Cars

If you have a successful business, why not show it with a luxury business car like a BMW or Mercedes-Benz? Both brands top the 2019 sales charts in the luxury segment, according to Statista. Choose a business car rental that will impress, like a Mercedes-Benz G550C, Cadillac Ct6 or Cadillac Escalade. Get rid of high acquisition costs and waiting for the car to arrive, and with SIXT you can rent a Mercedes or Cadillac with a business discount. You also benefit by giving a customer the first impression that your business is doing well, and you are a worthy business partner.

If you want to be a little more edgy, choose a business car that’s outside the norms. Surprise your client by pulling up in a Dodge Charger, Jaguar F-Pace S or a Range Rover Sport. These models and

As an additional option, look like you’re coming straight from the executive floor with SIXT ride, our taxi service available in the SIXT app. Whether you need to go to the airport, to meet a client or to a business meeting, trained drivers worldwide are ready to pick you up and bring you to your next appointment anywhere in the city.

BIG THINGS COME IN SMALL PACKAGES: THE CITY BUSINESS CAR

If you are in the market for a small car for your business fleet, you’re not alone. Compact, economy and intermediate cars are all great choices for your business. The Honda Civic was the most-sold model in the US in these categories, but in the last month of 2019 the Toyota Corolla took over the crown, according to automotive data source Goodcarbadcar. A Toyota Corolla business car is a great option for driving in cities like Boston, New York, Miami or even Los Angeles. Find a parking spot is easier, and you can enjoy low fuel consumption and a small turning radius. Good options for business from the best-selling cars in 2019 (goodcarbadcar) are the Kia Forte and the VW Jetta.
Do you want a car with a little edginess? Choose a VW Beetle, or MINI Cooper, Clubman or Countryman, as a business car. These European gems show everyone that you’re an outside-the-box-thinker and a business partner ready for unconventional solutions.

SUVs AS A BUSINESS CAR

We love SUVs, so why don’t we use them as business cars? The combination of off-road-features and their higher clearance promise a comfortable ride on business trips, even for longer distances. The best-selling model in 2019 was the Toyota Rav4. The crossover SUV topped the charts for the first time, beating competing model like the Honda CR-V and Nissan Rogue.

The Chevrolet Equinox was one of the most-sold SUVs in the US in 2019. With a long history starting in 2003, the SUV fits every business, with a sporty look and high safety standards. Also in the top 10 best-selling SUVs: Jeep Grand Cherokee, Toyota Highlander, Jeep Cherokee and Jeep Wrangler. These models are available in the SIXT fleet for short-term rentals, long-term rentals or with a SIXT+ car subscription. If you want to drive like a German, choose a VW Tiguan or BMW X3, both among the top-selling cars in the US.

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Your guide to Taxable Fringe Benefits

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There are a variety of perks offered by employers to make jobs more enticing. If you started a new job or are preparing your taxes, you might want to know more about these taxable fringe benefits. Or maybe you’re an employer who wants to know what qualifies as a fringe benefit and how they are taxed. We will outline some examples of fringe benefits and what they look like to employees and go over some examples of non-taxable fringe benefits. We will also go over what these taxable fringe benefits mean for employees. Whatever the case, you can be armed with knowledge about fringe benefits whether you are receiving or supplying them.

1. What are Some Examples of Fringe Benefits?

If you get something outside of a regular paycheck from your employer, chances are it’s a fringe benefit. These perks are meant to offer motivation to the employees to do better work, and in some cases to retain employees. Some common benefits offered are:

  • Insurance coverage: This could include health insurance, life insurance, or even disability insurance. Insurance is one of the most popular fringe benefits you will find.
  • Retirement contributions: Whether it is 401k contributions or something else, companies often offer this kind of benefit.
  • Transportation reimbursement: If you live in a city with public transportation or use your personal vehicle for work, your employer may offer a benefit to pay for all or part of your costs.
  • Paying for meals: While often associated with the start-up tech culture, many companies pay for meals as an added benefit. This could be in free or heavily subsidized cafeterias or for team lunches or dinners when working late.
  • Company cars: If you are in sales or another position that involves a lot of driving, your company might provide either a leased vehicle or a rental.
  • Gym membership contribution: Employers want to keep their employees healthy and some offer a monthly contribution toward a gym membership or fitness classes.
  • Education assistance: This benefit might be offered if you need to take classes to learn something new and implement it at your company, or your job simply pays for part of their employees’ schooling.

2. What are Taxable Fringe Benefits?

Fortunately, most of the common fringe benefits fall into the non-taxable category. There are still some employee fringe benefits you might encounter that are taxable, however. Here are a few of them.

  • Moving expenses: It used to be that if you moved more than 50 miles for work, your company’s reimbursement for moving expenses was non-taxable. But the tax law (through the Tax Cuts and Jobs Act) was changed and until 2025, your work-related moving expenses are now considered one of the taxable benefits for employees no matter how far it is.
  • Excess mileage reimbursements: If you use your personal car for work and your mileage reimbursements go over what the IRS considers a standard amount, that excess amount is a taxable employee fringe benefit.
  • Some educational reimbursements: If the dollar amount your company pays for your education exceeds the IRS standard, you will be taxed on that amount. This also applies if the IRS finds that the schooling is not work-related.
  • Commuting by bike: Some companies give employees money each month if they commute by bike. Due to changes in the tax law, all that money is now taxable.

3. What are Non-Taxable Fringe Benefits?

Many of the common employee fringe benefits you will be offered at your job are (thankfully) tax-free. These benefits are truly non-taxable, meaning there are no federal, state, local, Social Security or Medicare taxes levied on them. However, you need to be certain come tax time that the fringe benefit is non-taxable the way you used it. Here are some examples of non-taxable fringe benefits.

  • Health benefits: These benefits include health, vision and dental coverage paid for by your employer. This also includes any payments made for things that are not covered by the health benefits, like a contribution towards eyeglasses, for instance.
  • Education: An employer can pay up to a certain amount for an employee’s education, including tuition, books, or other fees. If the employer pays over the amount set by the IRS, that is a taxable fringe benefit.
  • Various types of insurance: There are several kinds of coverage provided to employees that are tax-free. Long-term care coverage premiums, group term life insurance up to a certain amount, and disability coverage premiums. Benefits received from long-term care or disability coverage are taxable.
  • Transportation: If you drive to work, your employer can reimburse you up to a certain amount for parking. There is also a tax-free allowance to pay for things like shuttle busses or mass transit passes. Employers, however, will be taxed on this until at least 2025.
  • Childcare: An employer can pay for up to a certain amount of child or dependent care allowed by the IRS tax-free. However, if the employee files for a tax credit for child or dependent care, they cannot take the non-taxable fringe benefit for childcare from their employer.
  • Work provisions: If your employer pays or reimburses you for work-related travel expenses, business-related meals, or a company car that you drive for business purposes, these are all non-taxable.

Keep in mind that these are all just examples of things that are considered non-taxable by the IRS. There are other items that also fall into this category, so if your employer pays for something as a fringe benefit, you should be sure to check the IRS website or talk to your tax advisor about whether that item is taxable or tax free.

4. How Company Cars are Classified as a Fringe Benefit

Whether you use your personal vehicle for work, or your employer provides a car for you, you might be wondering how you will be taxed. It can get a bit complicated, but we are here to help walk you through it.

If your employer gives you a company car as part of your compensation package and allows for personal use of the vehicle, it’s important to keep track of your mileage for company and for personal driving. The value of the personal use of the vehicle is taxable, whether that is calculated on a cents-per-mile basis or fleet-average valuation. It’s also important to read up on the most-recent IRS rules regarding this, as they can change from year to year.

If you are a business owner or self-employed and using your personal vehicle for business, it’s also important to keep track of how much you use your vehicle for work. According to the IRS “If a taxpayer uses the car for both business and personal purposes, the expenses must be split. The deduction is based on the portion of mileage used for business.” While the deduction is based on mileage, there are 2 ways to figure your car expenses, according to the IRS.

Employees who use their personal car for work can no longer deduct the cost as a business expense, even if their employer doesn’t reimburse them for mileage or other car costs.

Those in need of a personal vehicle for work purposes have affordable options from SIXT, whether you want a car long-term, by the month, or just need transportation in a luxury car to impress clients.

SIXT rent

Book one of our premium company cars and show up to meetings and business functions in style. You can rent a company car for as little as one day or for a month or longer, depending on your needs. And you can also choose the car category that suits the needs of your business, whether that’s a sleek sedan, SUV with a lot of cargo space or even a pickup for transporting large items.

SIXT+

Our car subscription service offers a flexible way to have a vehicle for personal and business use without the commitment of buying or leasing a car. You can choose the type of vehicle, protection package and monthly mileage that works for your needs. And best of all, you can change your car or end the subscription on a monthly basis.

SIXT ride

Our car service is perfect for when you need to get to the airport for a business trip or have an important dinner and want transportation that impresses. You can easily book your ride with one of our professional drivers online or in the SIXT app.

Employees who use their personal car for work can no longer deduct the cost as a business expense, even if their employer doesn’t reimburse them for mileage or other car costs.