# What records do I need when my employees drive company-owned vehicles, including taking them home?

- **[United States (federal; Internal Revenue Code section 274(d) and 26 CFR part 1) · Any taxpayer relying on the “adequate records” route to substantiation]** To meet the “adequate records” requirements of section 274(d) a taxpayer shall maintain an account book, diary, log, statement of expense, trip sheets, or similar record, together with documentary evidence, which in combination are sufficient to establish each element of an expenditure or use specified in paragraph (b). → [CG-MCE-077#S05](#s-CG-MCE-077-S05)
- **[United States (federal; Internal Revenue Code section 274(d) and 26 CFR part 1) · Any taxpayer proving elements for listed property, including automobiles]** The elements to be proved for any listed property include the amount of each separate expenditure with respect to an item of listed property (such as cost of acquisition, capital improvements, lease payments, maintenance and repairs, or other expenditures) and the amount of each business/investment use based on the appropriate measure — mileage for automobiles and other means of transportation, and time for other listed property, unless the Commissioner approves an alternative method — together with the total use of the listed property for the taxable period. → [CG-MCE-077#S06](#s-CG-MCE-077-S06)
- **[United States (federal; Internal Revenue Code section 274(d) and 26 CFR part 1) · Any taxpayer maintaining an adequate record under section 274(d)]** An account book, diary, log, statement of expense, trip sheet, or similar record must be prepared or maintained in such manner that each recording of an element of an expenditure or use is made at or near the time of the expenditure or use. → [CG-MCE-077#S07](#s-CG-MCE-077-S07)
- **[United States (federal; Internal Revenue Code section 274(d) and 26 CFR part 1) · Taxpayers claiming a deduction or credit with respect to any vehicle]** On returns for taxable years beginning after December 31, 1984, taxpayers claiming a deduction or credit with respect to any vehicle are required to answer certain questions about the use of the vehicle; the information required on the return relates to mileage (total, business, commuting, and other personal mileage), percentage of business use, date placed in service, use of other vehicles, after-work use, whether the taxpayer has evidence to support the business use claimed, and whether or not that evidence is written. → [CG-MCE-077#S08](#s-CG-MCE-077-S08)
- **[United States (federal) · Employers providing fringe benefits to employees (and other recipients of services) for US federal employment tax purposes]** To reduce the lease value for business use, the employee must account to the employer for the business use by substantiating the usage (mileage, for example), the time and place of the travel and the business purpose of the travel; written records made at the time of each business use are the best evidence; and any use of a company-provided vehicle that isn't substantiated as business use is included in income. → [CG-MCE-077#S04](#s-CG-MCE-077-S04)

## What this page establishes

- What the use record has to contain — Partly established
- Driving between home and work in a company vehicle — Partly established
- When personal use isn't substantiated: putting a value on it — Established
- Vehicles and written policies that change what you record — Partly established
- Does a tracking device count as the record? — Partly established
- How long each record has to be kept — Not established
- Backing up what each vehicle costs the business — Not established
- What your insurer expects you to hold — Not established
- Why a company vehicle needs a record at all — Established
- How much detail, and when it has to be written down — Established
- Taking the vehicle home at night — Partly established (Required authority: primary regulator or government. Highest achieved: primary regulator or government.)
- Who produces the record, who collects it, and how often — Partly established
- What the employer holds alongside the driver's log — Partly established (Required authority: authoritative lender insurer or program documentation, primary regulator or government. Highest achieved: authoritative lender insurer or program documentation, primary regulator or government.)
- What lands in the employee's pay records, and by when — Established
- The conditions you actually have to meet to rely on them — Partly established
- Vehicles driven by more than one employee, or pooled — Not established
- Working with telematics data — Partly established
- Where the logs, the policy and the pay records sit — Not established
- A period whose records were never kept — Established

## Why a company vehicle needs a record at all
<a id="need-CG-MCE-077-P1"></a>

- <a id="s-CG-MCE-077-S01"></a>For taxable years beginning on or after January 1, 1986, no deduction or credit is allowed with respect to any listed property (as defined in section 280F(d)(4) and § 1.280F–6T(b)) — alongside travel away from home, entertainment and gifts — unless the taxpayer substantiates each element of the expenditure or use described in paragraph (b) in the manner provided in paragraph (c). _(jurisdiction: United States (federal; Internal Revenue Code section 274(d) and 26 CFR part 1), entity_scope: Any taxpayer claiming a deduction or credit for the listed categories, including for listed property, effective_from: taxable years beginning after December 31, 1985 (paragraph (a): on or after January 1, 1986))_ `CG-MCE-077#S01`
  > “For taxable years beginning on or after January 1, 1986, no
deduction or credit shall be allowed
with respect to—
(1) Traveling away from home (including meals and lodging),
(2) Any activity which is of a type
generally considered to constitute entertainment, amusement, or recre-

ation, or with respect to a facility used
in connection with such an activity, including the items specified in section
274(e),
(3) Gifts defined in section 274(b), or
(4) Any listed property (as defined in
section 280F(d)(4) and § 1.280F–6T(b)),
unless the taxpayer substantiates each
element of the expenditure or use (as
described in paragraph (b) of this section) in the manner provided in paragraph (c) of this section.” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.274-5T - Substantiation requirements (temporary)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol4/pdf/CFR-2025-title26-vol4-sec1-274-5T.pdf), 2025-04-01; § 1.274–5T(a) “In general”, printed p. 996. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S02"></a>An employee may not exclude from gross income as a working condition fringe any amount of the value of the availability of listed property provided by an employer to the employee, unless the employee substantiates for the period of availability the amount of the exclusion in accordance with section 274(d) and either § 1.274–5T or § 1.274–6T. _(jurisdiction: United States (federal; Internal Revenue Code section 274(d) and 26 CFR part 1), entity_scope: Employees provided with listed property, including a vehicle, by an employer, effective_from: taxable years beginning after December 31, 1985 (paragraph (a): on or after January 1, 1986), conditions: Substantiation must cover the period of availability)_ `CG-MCE-077#S02`
  > “An employee may
not exclude from gross income as a
working condition fringe any amount
of the value of the availability of listed
property provided by an employer to
the employee, unless the employee substantiates for the period of availability
the amount of the exclusion in accordance with the requirements of section
274(d) and either this section or § 1.274–
6T.” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.274-5T - Substantiation requirements (temporary)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol4/pdf/CFR-2025-title26-vol4-sec1-274-5T.pdf), 2025-04-01; § 1.274–5T(e)(1)(i) “Substantiation of the business use of listed property made available by an employer for use by an employee — Employee — In general”, printed p. 1003. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S03"></a>The section 274(d) substantiation limitation supersedes the Cohan v. Commissioner doctrine of close approximation, and section 274(d) contemplates that no deduction or credit is to be allowed a taxpayer on the basis of such approximations or unsupported testimony of the taxpayer. _(jurisdiction: United States (federal; Internal Revenue Code section 274(d) and 26 CFR part 1), entity_scope: Any taxpayer claiming a deduction or credit subject to section 274(d), effective_from: taxable years beginning after December 31, 1985 (paragraph (a): on or after January 1, 1986))_ `CG-MCE-077#S03`
  > “This limitation supersedes the doctrine found in
Cohan v. Commissioner, 39 F. 2d 540 (2d
Cir. 1930). The decision held that, where
the evidence indicated a taxpayer incurred deductible travel or entertainment expenses but the exact amount
could not be determined, the court
should make a close approximation and
not disallow the deduction entirely.
Section 274(d) contemplates that no deduction or credit shall be allowed a
taxpayer on the basis of such approximations or unsupported testimony of
the taxpayer.” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.274-5T - Substantiation requirements (temporary)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol4/pdf/CFR-2025-title26-vol4-sec1-274-5T.pdf), 2025-04-01; § 1.274–5T(a) “In general”, printed p. 996. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S04"></a>To reduce the lease value for business use, the employee must account to the employer for the business use by substantiating the usage (mileage, for example), the time and place of the travel and the business purpose of the travel; written records made at the time of each business use are the best evidence; and any use of a company-provided vehicle that isn't substantiated as business use is included in income. _(jurisdiction: United States (federal), entity_scope: Employers providing fringe benefits to employees (and other recipients of services) for US federal employment tax purposes, effective_from: 2026-01-01, effective_to: 2026-12-31, conditions: mileage is given as an example of usage substantiation)_ `CG-MCE-077#S04`
  > “In order to do this, the employee must account to the employer for the business use. This is done by substantiating the usage (mileage, for example), the time and place of the travel, and the business purpose of the travel. Written records made at the time of each business use are the best evidence. Any use of a company-provided vehicle that isn’t substantiated as business use is included in income.” — [Internal Revenue Service, Department of the Treasury — Publication 15-B (2026), Employer’s Tax Guide to Fringe Benefits](https://www.irs.gov/publications/p15b), 2026-04-30; 3. Fringe Benefit Valuation Rules / Lease Value Rule. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

## What the use record has to contain
<a id="need-CG-MCE-077-C1"></a>

- <a id="s-CG-MCE-077-S05"></a>To meet the “adequate records” requirements of section 274(d) a taxpayer shall maintain an account book, diary, log, statement of expense, trip sheets, or similar record, together with documentary evidence, which in combination are sufficient to establish each element of an expenditure or use specified in paragraph (b). _(jurisdiction: United States (federal; Internal Revenue Code section 274(d) and 26 CFR part 1), entity_scope: Any taxpayer relying on the “adequate records” route to substantiation, effective_from: taxable years beginning after December 31, 1985 (paragraph (a): on or after January 1, 1986), conditions: The kinds of record named are an open list ending in “or similar record”; Documentary evidence is governed by paragraph (c)(2)(iii), which is reserved and cross-refers to § 1.274–5(c)(2)(iii))_ `CG-MCE-077#S05`
  > “To meet the
‘‘adequate records’’ requirements of
section 274(d), a taxpayer shall maintain an account book, diary, log, statement of expense, trip sheets, or similar
record (as provided in paragraph
(c)(2)(ii) of this section), and documentary evidence (as provided in paragraph
(c)(2)(iii) of this section) which, in combination, are sufficient to establish
each element of an expenditure or use
specified in paragraph (b) of this section.” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.274-5T - Substantiation requirements (temporary)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol4/pdf/CFR-2025-title26-vol4-sec1-274-5T.pdf), 2025-04-01; § 1.274–5T(c)(2)(i) “Substantiation by adequate records — In general”, printed p. 998. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S06"></a>The elements to be proved for any listed property include the amount of each separate expenditure with respect to an item of listed property (such as cost of acquisition, capital improvements, lease payments, maintenance and repairs, or other expenditures) and the amount of each business/investment use based on the appropriate measure — mileage for automobiles and other means of transportation, and time for other listed property, unless the Commissioner approves an alternative method — together with the total use of the listed property for the taxable period. _(jurisdiction: United States (federal; Internal Revenue Code section 274(d) and 26 CFR part 1), entity_scope: Any taxpayer proving elements for listed property, including automobiles, effective_from: taxable years beginning after December 31, 1985 (paragraph (a): on or after January 1, 1986), conditions: The list of expenditure kinds is introduced by “such as” and is not closed; An alternative measure is possible if the Commissioner approves it)_ `CG-MCE-077#S06`
  > “(6) Listed property. The elements to be
proved with respect to any listed property are—
(i) Amount—(A) Expenditures. The
amount of each separate expenditure
with respect to an item of listed property, such as the cost of acquisition,
the cost of capital improvements, lease
payments, the cost of maintenance and
repairs, or other expenditures, and
(B) Uses. The amount of each business/investment use (as defined in
§ 1.280F–6T (d)(3) and (e)), based on the
appropriate measure (i.e., mileage for
automobiles and other means of transportation and time for other listed
property, unless the Commissioner approves an alternative method), and the
total use of the listed property for the
taxable period.” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.274-5T - Substantiation requirements (temporary)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol4/pdf/CFR-2025-title26-vol4-sec1-274-5T.pdf), 2025-04-01; § 1.274–5T(b)(6)(i) “Listed property — Amount”, printed p. 997. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S07"></a>An account book, diary, log, statement of expense, trip sheet, or similar record must be prepared or maintained in such manner that each recording of an element of an expenditure or use is made at or near the time of the expenditure or use. _(jurisdiction: United States (federal; Internal Revenue Code section 274(d) and 26 CFR part 1), entity_scope: Any taxpayer maintaining an adequate record under section 274(d), effective_from: taxable years beginning after December 31, 1985 (paragraph (a): on or after January 1, 1986))_ `CG-MCE-077#S07`
  > “An account book, diary, log, statement of expense, trip sheet, or similar record
must be prepared or maintained in
such manner that each recording of an
element of an expenditure or use is
made at or near the time of the expenditure or use.” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.274-5T - Substantiation requirements (temporary)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol4/pdf/CFR-2025-title26-vol4-sec1-274-5T.pdf), 2025-04-01; § 1.274–5T(c)(2)(ii) “Account book, diary, etc.”, printed p. 998. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S08"></a>On returns for taxable years beginning after December 31, 1984, taxpayers claiming a deduction or credit with respect to any vehicle are required to answer certain questions about the use of the vehicle; the information required on the return relates to mileage (total, business, commuting, and other personal mileage), percentage of business use, date placed in service, use of other vehicles, after-work use, whether the taxpayer has evidence to support the business use claimed, and whether or not that evidence is written. _(jurisdiction: United States (federal; Internal Revenue Code section 274(d) and 26 CFR part 1), entity_scope: Taxpayers claiming a deduction or credit with respect to any vehicle, effective_from: returns for taxable years beginning after December 31, 1984, conditions: Commuting mileage is called for separately from other personal mileage; This states what the tax return asks for, not the content of the underlying record)_ `CG-MCE-077#S08`
  > “On returns
for taxable years beginning after December 31, 1984, taxpayers that claim a
deduction or credit with respect to any
vehicle are required to answer certain
questions providing information about
the use of the vehicle. The information
required on the tax return relates to
mileage (total, business, commuting,
and other personal mileage), percentage of business use, date placed in service, use of other vehicles, after-work
use, whether the taxpayer has evidence
to support the business use claimed on
the return, and whether or not the evidence is written.” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.274-5T - Substantiation requirements (temporary)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol4/pdf/CFR-2025-title26-vol4-sec1-274-5T.pdf), 2025-04-01; § 1.274–5T(d)(2)(i) “Business use of passenger automobiles and other vehicles”, printed p. 1002. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

_Partly established. Established: What a substantiating record of business use of an employer-provided vehicle must contain (S05, S43); The expectation that the record be made at or near the time of use (S07); What may stand in place of such a record for a period in which none was made at the time (S51, S52). Missing: What must equally be recorded about use that is not business use, including travel between the employee's home and a workplace; Who is expected to produce and retain the record, including where a vehicle is driven by more than one employee or pooled so that no single driver holds it._

## How much detail, and when it has to be written down
<a id="need-CG-MCE-077-P2"></a>

- See above: To meet the “adequate records” requirements of section 274(d) a taxpayer shall maintain an account book, diary, log, statement of expense, trip sheets, or similar record, together with documentary evidence, which in combination are sufficient to establish each element of an expenditure or use specified in paragraph (b). ([CG-MCE-077#S05](#s-CG-MCE-077-S05))

- See above: The elements to be proved for any listed property include the amount of each separate expenditure with respect to an item of listed property (such as cost of acquisition, capital improvements, lease payments, maintenance and repairs, or other expenditures) and the amount of each business/investment use based on the appropriate measure — mileage for automobiles and other means of transportation, and time for other listed property, unless the Commissioner approves an alternative method — together with the total use of the listed property for the taxable period. ([CG-MCE-077#S06](#s-CG-MCE-077-S06))

- See above: An account book, diary, log, statement of expense, trip sheet, or similar record must be prepared or maintained in such manner that each recording of an element of an expenditure or use is made at or near the time of the expenditure or use. ([CG-MCE-077#S07](#s-CG-MCE-077-S07))

- <a id="s-CG-MCE-077-S09"></a>The elements to be proved for any listed property also include the date of the expenditure or use with respect to that listed property and the business purpose for the expenditure or use. _(jurisdiction: United States (federal; Internal Revenue Code section 274(d) and 26 CFR part 1), entity_scope: Any taxpayer proving elements for listed property, including automobiles, effective_from: taxable years beginning after December 31, 1985 (paragraph (a): on or after January 1, 1986))_ `CG-MCE-077#S09`
  > “(ii) Time. Date of the expenditure or
use with respect to listed property, and
(iii) Business or investment purpose.
The business purpose for an expenditure or use with respect to any listed
property (see § 1.274–5T(c)(6)(i) (B) and
(C) for special rules for the aggregation
of expenditures and business use and
§ 1.280F–6T(d)(2) for the distinction between qualified business use and business/investment use).” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.274-5T - Substantiation requirements (temporary)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol4/pdf/CFR-2025-title26-vol4-sec1-274-5T.pdf), 2025-04-01; § 1.274–5T(b)(6)(ii)–(iii) “Time” and “Business or investment purpose”, printed p. 997. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

## Driving between home and work in a company vehicle
<a id="need-CG-MCE-077-C2"></a>

- <a id="s-CG-MCE-077-S10"></a>The publication defines a fringe benefit as a form of pay for the performance of services, and gives as its example of providing one the case where an employer allows an employee to use a business vehicle to commute to and from work. _(jurisdiction: United States (federal), entity_scope: Employers providing fringe benefits to employees (and other recipients of services) for US federal employment tax purposes, effective_from: 2026-01-01, effective_to: 2026-12-31, conditions: stated as an example, not as an exhaustive rule)_ `CG-MCE-077#S10`
  > “A fringe benefit is a form of pay for the performance of services. For example, you provide an employee with a fringe benefit when you allow the employee to use a business vehicle to commute to and from work.” — [Internal Revenue Service, Department of the Treasury — Publication 15-B (2026), Employer’s Tax Guide to Fringe Benefits](https://www.irs.gov/publications/p15b), 2026-04-30; Publication 15-B - Main Contents / 1. Fringe Benefit Overview (opening paragraph). Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S11"></a>The costs of taking a bus, trolley, subway, or taxi, or of driving a car, between home and the main or regular place of work are personal commuting expenses and cannot be deducted, regardless of the distance from home to the regular place of work and even if the taxpayer works during the commuting trip. _(jurisdiction: United States — federal income tax administered by the IRS, entity_scope: Taxpayers deducting business car expenses; the publication states it is for employees and sole proprietors with business-related travel, meal, gift, or transportation expenses, accounting_basis: U.S. federal income tax rules (not financial-reporting/GAAP basis), effective_from: 2025 tax year — Publication 463 (2025), for use in preparing 2025 Returns)_ `CG-MCE-077#S11`
  > “You can’t deduct the costs of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. These costs are personal commuting expenses. You can’t deduct commuting expenses no matter how far your home is from your regular place of work. You can’t deduct commuting expenses even if you work during the commuting trip.” — [Internal Revenue Service, U.S. Department of the Treasury — Publication 463 (2025), Travel, Gift, and Car Expenses](https://www.irs.gov/publications/p463), 2026-04-30; Chapter 4. Transportation → Commuting expenses.. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S12"></a>Among the examples the publication gives of benefits that aren't excludable as de minimis fringe benefits is the commuting use of an employer-provided automobile or other vehicle more than 1 day a month; the sentence is framed as examples, not a closed list. _(jurisdiction: United States (federal), entity_scope: Employers providing fringe benefits to employees (and other recipients of services) for US federal employment tax purposes, effective_from: 2026-01-01, effective_to: 2026-12-31, conditions: presented as 'some examples', not an exhaustive list)_ `CG-MCE-077#S12`
  > “Some examples of benefits that aren’t excludable as de minimis fringe benefits are season tickets to sporting or theatrical events; the commuting use of an employer-provided automobile or other vehicle more than 1 day a month; membership in a private country club or athletic facility, regardless of the frequency with which the employee uses the facility; and use of employer-owned or -leased facilities (such as an apartment, hunting lodge, boat, etc.) for a weekend. If a benefit provided to an employee doesn’t qualify as de minimis (for example, the frequency exceeds a limit described earlier), then generally the entire benefit must be included in income.” — [Internal Revenue Service, Department of the Treasury — Publication 15-B (2026), Employer’s Tax Guide to Fringe Benefits](https://www.irs.gov/publications/p15b), 2026-04-30; 2. Fringe Benefit Exclusion Rules / De Minimis (Minimal) Benefits. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S13"></a>A ride in a commuter highway vehicle between the employee's home and work place is one of the benefits listed as covered by the qualified transportation benefits exclusion. _(jurisdiction: United States (federal), entity_scope: Employers providing fringe benefits to employees (and other recipients of services) for US federal employment tax purposes, effective_from: 2026-01-01, effective_to: 2026-12-31)_ `CG-MCE-077#S13`
  > “A ride in a commuter highway vehicle between the employee’s home and work place.” — [Internal Revenue Service, Department of the Treasury — Publication 15-B (2026), Employer’s Tax Guide to Fringe Benefits](https://www.irs.gov/publications/p15b), 2026-04-30; 2. Fringe Benefit Exclusion Rules / Transportation (Commuting) Benefits / Qualified Transportation Benefits (listed benefit). Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

_Partly established. Established: How travel between an employee's home and a workplace in an employer-provided vehicle is characterised (S10). Missing: The classes of exception recognised for that characterisation._

## Taking the vehicle home at night
<a id="need-CG-MCE-077-P3"></a>

- See above: On returns for taxable years beginning after December 31, 1984, taxpayers claiming a deduction or credit with respect to any vehicle are required to answer certain questions about the use of the vehicle; the information required on the return relates to mileage (total, business, commuting, and other personal mileage), percentage of business use, date placed in service, use of other vehicles, after-work use, whether the taxpayer has evidence to support the business use claimed, and whether or not that evidence is written. ([CG-MCE-077#S08](#s-CG-MCE-077-S08))

- See above: The publication defines a fringe benefit as a form of pay for the performance of services, and gives as its example of providing one the case where an employer allows an employee to use a business vehicle to commute to and from work. ([CG-MCE-077#S10](#s-CG-MCE-077-S10))

- See above: The costs of taking a bus, trolley, subway, or taxi, or of driving a car, between home and the main or regular place of work are personal commuting expenses and cannot be deducted, regardless of the distance from home to the regular place of work and even if the taxpayer works during the commuting trip. ([CG-MCE-077#S11](#s-CG-MCE-077-S11))

- See above: Among the examples the publication gives of benefits that aren't excludable as de minimis fringe benefits is the commuting use of an employer-provided automobile or other vehicle more than 1 day a month; the sentence is framed as examples, not a closed list. ([CG-MCE-077#S12](#s-CG-MCE-077-S12))

_Partly established. Established: How taking the vehicle home is categorised (S10). Missing: What has to be recorded about taking the vehicle home._

_Required authority: primary regulator or government. Highest achieved: primary regulator or government._

## Who produces the record, who collects it, and how often
<a id="need-CG-MCE-077-P4"></a>

- <a id="s-CG-MCE-077-S15"></a>By way of the regulation's own example, a log maintained on a weekly basis which accounts for use during the week is considered a record made at or near the time of such use. _(jurisdiction: United States (federal; Internal Revenue Code section 274(d) and 26 CFR part 1), entity_scope: Taxpayers keeping a log of use, effective_from: taxable years beginning after December 31, 1985 (paragraph (a): on or after January 1, 1986), conditions: Given as an example of what satisfies the at-or-near-the-time standard, not as a prescribed cadence)_ `CG-MCE-077#S15`
  > “For example, a log
maintained on a weekly basis, which
accounts for use during the week, shall
be considered a record made at or near
the time of such use.” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.274-5T - Substantiation requirements (temporary)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol4/pdf/CFR-2025-title26-vol4-sec1-274-5T.pdf), 2025-04-01; § 1.274–5T(c)(2)(ii)(A) “Made at or near the time of the expenditure or use”, printed p. 998. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S17"></a>The employer must retain a copy of the adequate records maintained by the employee, or of the other sufficient evidence, if available. _(jurisdiction: United States (federal; Internal Revenue Code section 274(d) and 26 CFR part 1), entity_scope: Employers relying on employee-maintained records for listed property, effective_from: taxable years beginning after December 31, 1985 (paragraph (a): on or after January 1, 1986), conditions: Retention is of a copy, and is qualified by “if available”)_ `CG-MCE-077#S17`
  > “The employer must
retain a copy of the adequate records
maintained by the employee or the
other sufficient evidence, if available.” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.274-5T - Substantiation requirements (temporary)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol4/pdf/CFR-2025-title26-vol4-sec1-274-5T.pdf), 2025-04-01; § 1.274–5T(e)(2)(ii) “Reliance on employee records”, printed p. 1003. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

_Partly established. Established: The driver producing the record (S04). Missing: The employer collecting, reviewing and retaining it; Who resolves exceptions; The cadence on which that happens._

## Vehicles driven by more than one employee, or pooled
<a id="need-CG-MCE-077-P8"></a>

- <a id="s-CG-MCE-077-S18"></a>The sampling method of paragraph (c)(3)(ii)(A) may not be used to substantiate the business/investment use of an automobile or other vehicle of an employer that is made available for use by more than one employee for all or a portion of a taxable year. _(jurisdiction: United States (federal; Internal Revenue Code section 274(d) and 26 CFR part 1), entity_scope: Employers whose automobile or other vehicle is made available for use by more than one employee, effective_from: taxable years beginning after December 31, 1985 (paragraph (a): on or after January 1, 1986), conditions: Applies where the vehicle is made available to more than one employee for all or a portion of the taxable year)_ `CG-MCE-077#S18`
  > “The
sampling
method
of
paragraph
(c)(3)(ii)(A) of this section may not be
used to substantiate the business/investment use of an automobile or other
vehicle of an employer that is made
available for use by more than one employee for all or a portion of a taxable
year.” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.274-5T - Substantiation requirements (temporary)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol4/pdf/CFR-2025-title26-vol4-sec1-274-5T.pdf), 2025-04-01; § 1.274–5T(c)(3)(ii)(B) “Exception for pooled vehicles”, printed p. 1000. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S20"></a>One of the conditions in paragraph (a)(2)(i) is that no employee using the vehicle lives at the employer’s business premises — the test reaches every employee who uses the vehicle, not only one assigned driver. _(jurisdiction: United States — federal income tax law (26 CFR, Internal Revenue Code section 274(d)), entity_scope: employers that own or lease a vehicle and provide it to one or more employees (paragraph (e)(2) treats a sole proprietor as both employer and employee, a partnership as an employer of its partners, and a partner as an employee of the partnership), accounting_basis: U.S. federal income tax substantiation / reporting, effective_from: taxable years beginning after December 31, 1985, conditions: temporary regulation (§ 1.274–6T is designated “temporary”); text as printed in the 26 CFR annual edition revised as of April 1, 2025; one of the five conditions of paragraph (a)(2)(i), all of which must be met)_ `CG-MCE-077#S20`
  > “No employee using the vehicle
lives at the employer’s business premises,” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.274-6T - Substantiation with respect to certain types of listed property for taxable years beginning after 1985 (temporary)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol4/pdf/CFR-2025-title26-vol4-sec1-274-6T.pdf), 2025-04-01; § 1.274–6T(a)(2)(i)(C), printed page 1007. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S21"></a>Where an employer provides a vehicle for use by more than one employee at the same time, such as an employer-sponsored vehicle commuting pool, the employer may use any of the special valuation rules that may be applicable, must use the same special valuation rule for each employee who shares the use, and must allocate the value of the use among those employees based on the relevant facts and circumstances. _(jurisdiction: United States — federal tax law administered by the Internal Revenue Service / Department of the Treasury (26 CFR part 1, under section 61 of the Internal Revenue Code of 1986), entity_scope: Employers providing fringe benefits and the persons performing the related services to whom the benefits are taxable (the section's 'employees', which it says need not be employees of the provider), effective_from: 1989-01-01, conditions: 26 CFR annual edition revised as of April 1, 2025 (heading '26 CFR Ch. I (4–1–25 Edition)'); paragraph (a)(6): except as otherwise provided, this section is effective as of January 1, 1989 with respect to fringe benefits provided after December 31, 1988)_ `CG-MCE-077#S21`
  > “If an employer provides a vehicle to employees
for use by more than one employee at
the same time, such as with an employer-sponsored vehicle commuting
pool, the employer may use any of the
special valuation rules that may be applicable to value the use of the vehicle
by the employees. The employer must
use the same special valuation rule to
value the use of the vehicle by each
employee who shares such use. The employer must allocate the value of the
use of the vehicle based on the relevant
facts and circumstances among the employees who share use of the vehicle.” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.61-21 - Taxation of fringe benefits](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol2/pdf/CFR-2025-title26-vol2-sec1-61-21.pdf), 2025-04-01; § 1.61–21(c)(2)(iii)(B) Vehicle special valuation rules—Shared vehicle usage, p. 33. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

_Not established from an authoritative source._

## What the employer holds alongside the driver's log
<a id="need-CG-MCE-077-P5"></a>

- <a id="s-CG-MCE-077-S22"></a>Two types of written policy statement — one implementing a policy of no personal use, the other a policy of no personal use except for commuting — qualify as sufficient evidence corroborating the taxpayer’s own statement, and so satisfy the employer’s section 274(d) substantiation requirements, but only if they are initiated and kept by the employer and satisfy the conditions in paragraphs (a)(2) and (3). _(jurisdiction: United States — federal income tax law (26 CFR, Internal Revenue Code section 274(d)), entity_scope: employers that own or lease a vehicle and provide it to one or more employees (paragraph (e)(2) treats a sole proprietor as both employer and employee, a partnership as an employer of its partners, and a partner as an employee of the partnership), accounting_basis: U.S. federal income tax substantiation / reporting, effective_from: taxable years beginning after December 31, 1985, conditions: temporary regulation (§ 1.274–6T is designated “temporary”); text as printed in the 26 CFR annual edition revised as of April 1, 2025; the policy statement must be initiated and kept by the employer; the conditions of paragraph (a)(2) or (3) must be satisfied)_ `CG-MCE-077#S22`
  > “Two types of written policy statements satisfying the
conditions described in paragraph (a)(2)
and (3) of this section, if initiated and
kept by an employer to implement a
policy of no personal use, or no personal use except for commuting, of a
vehicle provided by the employer, qualify as sufficient evidence corroborating
the taxpayer’s own statement and
therefore will satisfy the employer’s
substantiation requirements under section 274(d).” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.274-6T - Substantiation with respect to certain types of listed property for taxable years beginning after 1985 (temporary)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol4/pdf/CFR-2025-title26-vol4-sec1-274-6T.pdf), 2025-04-01; § 1.274–6T(a)(1) “Written policy statements as to vehicles—In general”, printed page 1006. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S23"></a>One of the conditions in paragraph (a)(3)(i) is that the employer has established a written policy under which neither the employee nor any individual whose use would be taxable to the employee may use the vehicle for personal purposes, other than for commuting or de minimis personal use. _(jurisdiction: United States — federal income tax law (26 CFR, Internal Revenue Code section 274(d)), entity_scope: employers that own or lease a vehicle and provide it to one or more employees (paragraph (e)(2) treats a sole proprietor as both employer and employee, a partnership as an employer of its partners, and a partner as an employee of the partnership), accounting_basis: U.S. federal income tax substantiation / reporting, effective_from: taxable years beginning after December 31, 1985, conditions: temporary regulation (§ 1.274–6T is designated “temporary”); text as printed in the 26 CFR annual edition revised as of April 1, 2025; one of the six conditions of paragraph (a)(3)(i), all of which must be met)_ `CG-MCE-077#S23`
  > “The employer has established a
written policy under which neither the
employee, nor any individual whose use
would be taxable to the employee, may
use the vehicle for personal purposes,
other than for commuting or de minimis personal use” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.274-6T - Substantiation with respect to certain types of listed property for taxable years beginning after 1985 (temporary)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol4/pdf/CFR-2025-title26-vol4-sec1-274-6T.pdf), 2025-04-01; § 1.274–6T(a)(3)(i)(C), printed page 1007 (sentence continues onto printed page 1008). Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S25"></a>Amounts expended in connection with the use of listed property during a taxable year, such as for gasoline or repairs for an automobile, may be aggregated; if they are aggregated the taxpayer must establish the date and amount but need not prove the business purpose of each expenditure, and may instead prorate the expenses based on the total business use of the listed property. _(jurisdiction: United States (federal; Internal Revenue Code section 274(d) and 26 CFR part 1), entity_scope: Taxpayers aggregating running expenses of listed property such as an automobile, effective_from: taxable years beginning after December 31, 1985 (paragraph (a): on or after January 1, 1986), conditions: The kinds of expense named are introduced by “such as” and are not a closed list; Proration is conditioned on the expenses having been aggregated)_ `CG-MCE-077#S25`
  > “In addition, amounts expended
in connection with the use of listed
property during a taxable year, such as
for gasoline or repairs for an automobile, may be aggregated. If these expenses are aggregated, the taxpayer
must establish the date and amount,
but need not prove the business purpose of each expenditure. Instead, the

taxpayer may prorate the expenses
based on the total business use of the
listed property.” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.274-5T - Substantiation requirements (temporary)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol4/pdf/CFR-2025-title26-vol4-sec1-274-5T.pdf), 2025-04-01; § 1.274–5T(c)(6)(i)(B) “Aggregation of expenditures”, printed p. 1001. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S26"></a>Travelers Risk Control advises reviewing all accidents and incidents as part of monitoring driver performance. _(jurisdiction: United States, entity_scope: Businesses that have drivers driving on behalf of the company (fleet operators and employers of driving employees), conditions: Published as guidance: the section is headed 'Four steps to help identify safer drivers' and is stated to be informational only, not a policy requirement; Travelers states the content does not, and is not intended to, affect the provisions or coverages of any insurance policy or bond issued by Travelers; Stated as review of accidents and incidents; the document does not state that a written incident or claims file must be retained, nor for how long)_ `CG-MCE-077#S26`
  > “Review all accidents and incidents.” — [The Travelers Indemnity Company (Travelers Risk Control) — 4 Steps to Safer Drivers](https://www.travelers.com/resources/business-topics/driver-fleet-safety/4-steps-to-identify-your-safest-drivers), No edition or version stated on the page; site notice reads '©2026 The Travelers Indemnity Company. All rights reserved.'; Section 'Four steps to help identify safer drivers', step '2. Monitor driver performance', bullet 1. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

_Partly established. Established: The written vehicle-use policy (S22). Missing: Vehicle assignment, in the employer-side record set that sits alongside the driver's log; The driver's acknowledgement; The fuel, toll and maintenance records tied to the vehicle; The incident and insurance file._

_Required authority: authoritative lender insurer or program documentation, primary regulator or government. Highest achieved: authoritative lender insurer or program documentation, primary regulator or government._

## Backing up what each vehicle costs the business
<a id="need-CG-MCE-077-C7"></a>

- See above: Amounts expended in connection with the use of listed property during a taxable year, such as for gasoline or repairs for an automobile, may be aggregated; if they are aggregated the taxpayer must establish the date and amount but need not prove the business purpose of each expenditure, and may instead prorate the expenses based on the total business use of the listed property. ([CG-MCE-077#S25](#s-CG-MCE-077-S25))

- <a id="s-CG-MCE-077-S27"></a>Documentary evidence such as receipts, canceled checks, or bills must generally be held to support expenses. _(jurisdiction: United States — federal income tax administered by the IRS, entity_scope: Taxpayers deducting business car expenses; the publication states it is for employees and sole proprietors with business-related travel, meal, gift, or transportation expenses, accounting_basis: U.S. federal income tax rules (not financial-reporting/GAAP basis), effective_from: 2025 tax year — Publication 463 (2025), for use in preparing 2025 Returns)_ `CG-MCE-077#S27`
  > “You must generally have documentary evidence such as receipts, canceled checks, or bills, to support your expenses.” — [Internal Revenue Service, U.S. Department of the Treasury — Publication 463 (2025), Travel, Gift, and Car Expenses](https://www.irs.gov/publications/p463), 2026-04-30; Chapter 5. Recordkeeping → How To Prove Expenses → What Are Adequate Records? → Documentary evidence.. Verified 2026-09-09.

- <a id="s-CG-MCE-077-S28"></a>Documentary evidence will ordinarily be considered adequate if it shows the amount, date, place, and essential character of the expense. _(jurisdiction: United States — federal income tax administered by the IRS, entity_scope: Taxpayers deducting business car expenses; the publication states it is for employees and sole proprietors with business-related travel, meal, gift, or transportation expenses, accounting_basis: U.S. federal income tax rules (not financial-reporting/GAAP basis), effective_from: 2025 tax year — Publication 463 (2025), for use in preparing 2025 Returns)_ `CG-MCE-077#S28`
  > “Documentary evidence will ordinarily be considered adequate if it shows the amount, date, place, and essential character of the expense.” — [Internal Revenue Service, U.S. Department of the Treasury — Publication 463 (2025), Travel, Gift, and Car Expenses](https://www.irs.gov/publications/p463), 2026-04-30; Chapter 5. Recordkeeping → How To Prove Expenses → What Are Adequate Records? → Adequate evidence.. Verified 2026-09-09.

- <a id="s-CG-MCE-077-S29"></a>If the return is examined, additional information may have to be provided to the IRS, which could be needed to clarify or establish the accuracy or reliability of information in the taxpayer's records, statements, testimony, or documentary evidence before a deduction is allowed. _(jurisdiction: United States — federal income tax administered by the IRS, entity_scope: Taxpayers deducting business car expenses; the publication states it is for employees and sole proprietors with business-related travel, meal, gift, or transportation expenses, accounting_basis: U.S. federal income tax rules (not financial-reporting/GAAP basis), effective_from: 2025 tax year — Publication 463 (2025), for use in preparing 2025 Returns, conditions: return examined)_ `CG-MCE-077#S29`
  > “If your return is examined, you may have to provide additional information to the IRS. This information could be needed to clarify or to establish the accuracy or reliability of information contained in your records, statements, testimony, or documentary evidence before a deduction is allowed.” — [Internal Revenue Service, U.S. Department of the Treasury — Publication 463 (2025), Travel, Gift, and Car Expenses](https://www.irs.gov/publications/p463), 2026-04-30; Chapter 5. Recordkeeping → Separating and Combining Expenses → If your return is examined.. Verified 2026-09-09.

_Not established from an authoritative source._

## Vehicles and written policies that change what you record
<a id="need-CG-MCE-077-C4"></a>

- See above: Two types of written policy statement — one implementing a policy of no personal use, the other a policy of no personal use except for commuting — qualify as sufficient evidence corroborating the taxpayer’s own statement, and so satisfy the employer’s section 274(d) substantiation requirements, but only if they are initiated and kept by the employer and satisfy the conditions in paragraphs (a)(2) and (3). ([CG-MCE-077#S22](#s-CG-MCE-077-S22))

- <a id="s-CG-MCE-077-S30"></a>All of an employee's use of a qualified nonpersonal use vehicle is a working condition benefit; a qualified nonpersonal use vehicle is any vehicle the employee isn't likely to use more than minimally for personal purposes because of its design; and the publication says such vehicles generally include the vehicles it then lists. _(jurisdiction: United States (federal), entity_scope: Employers providing fringe benefits to employees (and other recipients of services) for US federal employment tax purposes, effective_from: 2026-01-01, effective_to: 2026-12-31, conditions: the list that follows is introduced by 'generally include')_ `CG-MCE-077#S30`
  > “All of an employee’s use of a qualified nonpersonal use vehicle is a working condition benefit. A qualified nonpersonal use vehicle is any vehicle the employee isn’t likely to use more than minimally for personal purposes because of its design. Qualified nonpersonal use vehicles generally include all of the following vehicles.” — [Internal Revenue Service, Department of the Treasury — Publication 15-B (2026), Employer’s Tax Guide to Fringe Benefits](https://www.irs.gov/publications/p15b), 2026-04-30; 2. Fringe Benefit Exclusion Rules / Working Condition Benefits / Qualified nonpersonal use vehicles.. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S31"></a>Bucket trucks, cement mixers, combines, cranes and derricks, dump trucks (including garbage trucks), flatbed trucks, forklifts, qualified moving vans, qualified specialized utility repair trucks, and refrigerated trucks are listed as qualified nonpersonal use vehicles. _(jurisdiction: United States (federal), entity_scope: Employers providing fringe benefits to employees (and other recipients of services) for US federal employment tax purposes, effective_from: 2026-01-01, effective_to: 2026-12-31)_ `CG-MCE-077#S31`
  > “Bucket trucks, cement mixers, combines, cranes and derricks, dump trucks (including garbage trucks), flatbed trucks, forklifts, qualified moving vans, qualified specialized utility repair trucks, and refrigerated trucks.” — [Internal Revenue Service, Department of the Treasury — Publication 15-B (2026), Employer’s Tax Guide to Fringe Benefits](https://www.irs.gov/publications/p15b), 2026-04-30; 2. Fringe Benefit Exclusion Rules / Working Condition Benefits / Qualified nonpersonal use vehicles. (listed vehicle). Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S32"></a>A pickup truck with a loaded gross vehicle weight of 14,000 pounds or less is a qualified nonpersonal use vehicle if it has been specially modified so it isn't likely to be used more than minimally for personal purposes; the publication gives as an example a pickup truck clearly marked with permanently affixed decals, special painting or other advertising associated with the employer's trade, business or function that also meets either of the requirements it then lists. _(jurisdiction: United States (federal), entity_scope: Employers providing fringe benefits to employees (and other recipients of services) for US federal employment tax purposes, effective_from: 2026-01-01, effective_to: 2026-12-31, conditions: the marking-plus-equipment case is introduced as an example ('For example'))_ `CG-MCE-077#S32`
  > “A pickup truck with a loaded gross vehicle weight of 14,000 pounds or less is a qualified nonpersonal use vehicle if it has been specially modified so it isn’t likely to be used more than minimally for personal purposes. For example, a pickup truck qualifies if it is clearly marked with permanently affixed decals, special painting, or other advertising associated with your trade, business, or function and meets either of the following requirements.” — [Internal Revenue Service, Department of the Treasury — Publication 15-B (2026), Employer’s Tax Guide to Fringe Benefits](https://www.irs.gov/publications/p15b), 2026-04-30; 2. Fringe Benefit Exclusion Rules / Working Condition Benefits / Qualified nonpersonal use vehicles. / Pickup trucks.. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

_Partly established. Established: Which vehicles are recognised as ones whose personal use is treated as impractical (S30). Missing: The conditions a written policy prohibiting personal use or limiting it to commuting must satisfy to be relied on._

## The conditions you actually have to meet to rely on them
<a id="need-CG-MCE-077-P7"></a>

- See above: Two types of written policy statement — one implementing a policy of no personal use, the other a policy of no personal use except for commuting — qualify as sufficient evidence corroborating the taxpayer’s own statement, and so satisfy the employer’s section 274(d) substantiation requirements, but only if they are initiated and kept by the employer and satisfy the conditions in paragraphs (a)(2) and (3). ([CG-MCE-077#S22](#s-CG-MCE-077-S22))

- See above: All of an employee's use of a qualified nonpersonal use vehicle is a working condition benefit; a qualified nonpersonal use vehicle is any vehicle the employee isn't likely to use more than minimally for personal purposes because of its design; and the publication says such vehicles generally include the vehicles it then lists. ([CG-MCE-077#S30](#s-CG-MCE-077-S30))

- See above: A pickup truck with a loaded gross vehicle weight of 14,000 pounds or less is a qualified nonpersonal use vehicle if it has been specially modified so it isn't likely to be used more than minimally for personal purposes; the publication gives as an example a pickup truck clearly marked with permanently affixed decals, special painting or other advertising associated with the employer's trade, business or function that also meets either of the requirements it then lists. ([CG-MCE-077#S32](#s-CG-MCE-077-S32))

- <a id="s-CG-MCE-077-S33"></a>One of the conditions in paragraph (a)(2)(i) is that when the vehicle is not being used in the employer’s trade or business it is kept on the employer’s business premises, unless temporarily located elsewhere — maintenance or a mechanical failure being given as examples of such temporary absence. _(jurisdiction: United States — federal income tax law (26 CFR, Internal Revenue Code section 274(d)), entity_scope: employers that own or lease a vehicle and provide it to one or more employees (paragraph (e)(2) treats a sole proprietor as both employer and employee, a partnership as an employer of its partners, and a partner as an employee of the partnership), accounting_basis: U.S. federal income tax substantiation / reporting, effective_from: taxable years beginning after December 31, 1985, conditions: temporary regulation (§ 1.274–6T is designated “temporary”); text as printed in the 26 CFR annual edition revised as of April 1, 2025; one of the five conditions of paragraph (a)(2)(i), all of which must be met)_ `CG-MCE-077#S33`
  > “When the vehicle is not used in
the employer’s trade or business, it is
kept on the employer’s business premises, unless it is temporarily located
elsewhere, for example, for maintenance or because of a mechanical failure,” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.274-6T - Substantiation with respect to certain types of listed property for taxable years beginning after 1985 (temporary)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol4/pdf/CFR-2025-title26-vol4-sec1-274-6T.pdf), 2025-04-01; § 1.274–6T(a)(2)(i)(B), printed page 1007. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

_Partly established. Established: Vehicles whose design or marking makes personal use impractical (S30); Written policies prohibiting personal use or limiting it to commuting (S22). Missing: The conditions each category depends on._

## When personal use isn't substantiated: putting a value on it
<a id="need-CG-MCE-077-C3"></a>

- <a id="s-CG-MCE-077-S34"></a>If an employee uses the employer's vehicle for personal purposes, the value of that use must be determined by the employer and included in the employee's wages, and the value of the personal use must be based on the FMV or determined by using one of the three special valuation rules previously discussed in section 3. _(jurisdiction: United States (federal), entity_scope: Employers providing fringe benefits to employees (and other recipients of services) for US federal employment tax purposes, effective_from: 2026-01-01, effective_to: 2026-12-31)_ `CG-MCE-077#S34`
  > “If an employee uses the employer’s vehicle for personal purposes, the value of that use must be determined by the employer and included in the employee’s wages. The value of the personal use must be based on the FMV or determined by using one of the following three special valuation rules previously discussed in section 3” — [Internal Revenue Service, Department of the Treasury — Publication 15-B (2026), Employer’s Tax Guide to Fringe Benefits](https://www.irs.gov/publications/p15b), 2026-04-30; 4. Rules for Withholding, Depositing, and Reporting / Special rules for highway motor vehicles.. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S35"></a>Under the lease value rule the employer determines the value of an automobile it provides to an employee by using its annual lease value, and for an automobile provided only part of the year uses either its prorated annual lease value or its daily lease value. _(jurisdiction: United States (federal), entity_scope: Employers providing fringe benefits to employees (and other recipients of services) for US federal employment tax purposes, effective_from: 2026-01-01, effective_to: 2026-12-31)_ `CG-MCE-077#S35`
  > “Under this rule, you determine the value of an automobile you provide to an employee by using its annual lease value. For an automobile provided only part of the year, use either its prorated annual lease value or its daily lease value (discussed later).” — [Internal Revenue Service, Department of the Treasury — Publication 15-B (2026), Employer’s Tax Guide to Fringe Benefits](https://www.irs.gov/publications/p15b), 2026-04-30; 3. Fringe Benefit Valuation Rules / Lease Value Rule. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S36"></a>Under the cents-per-mile rule the employer determines the value of a vehicle it provides to an employee for personal use by multiplying the standard mileage rate by the total miles the employee drives the vehicle for personal purposes; personal use is any use of the vehicle other than use in the employer's trade or business; and this amount must be included in the employee's wages or reimbursed by the employee. _(jurisdiction: United States (federal), entity_scope: Employers providing fringe benefits to employees (and other recipients of services) for US federal employment tax purposes, effective_from: 2026-01-01, effective_to: 2026-12-31)_ `CG-MCE-077#S36`
  > “Under this rule, you determine the value of a vehicle you provide to an employee for personal use by multiplying the standard mileage rate by the total miles the employee drives the vehicle for personal purposes. Personal use is any use of the vehicle other than use in your trade or business. This amount must be included in the employee’s wages or reimbursed by the employee.” — [Internal Revenue Service, Department of the Treasury — Publication 15-B (2026), Employer’s Tax Guide to Fringe Benefits](https://www.irs.gov/publications/p15b), 2026-04-30; 3. Fringe Benefit Valuation Rules / Cents-per-Mile Rule. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S37"></a>Under the commuting rule the employer determines the value of a vehicle it provides to an employee for commuting use by multiplying each one-way commute (from home to work or from work to home) by $1.50; if more than one employee commutes in the vehicle this value applies to each employee; and this amount must be included in the employee's wages or reimbursed by the employee. _(jurisdiction: United States (federal), entity_scope: Employers providing fringe benefits to employees (and other recipients of services) for US federal employment tax purposes, effective_from: 2026-01-01, effective_to: 2026-12-31, conditions: $1.50 per one-way commute as stated in the 2026 edition)_ `CG-MCE-077#S37`
  > “Under this rule, you determine the value of a vehicle you provide to an employee for commuting use by multiplying each one-way commute (that is, from home to work or from work to home) by $1.50. If more than one employee commutes in the vehicle, this value applies to each employee. This amount must be included in the employee’s wages or reimbursed by the employee.” — [Internal Revenue Service, Department of the Treasury — Publication 15-B (2026), Employer’s Tax Guide to Fringe Benefits](https://www.irs.gov/publications/p15b), 2026-04-30; 3. Fringe Benefit Valuation Rules / Commuting Rule. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

## What lands in the employee's pay records, and by when
<a id="need-CG-MCE-077-P6"></a>

- See above: To reduce the lease value for business use, the employee must account to the employer for the business use by substantiating the usage (mileage, for example), the time and place of the travel and the business purpose of the travel; written records made at the time of each business use are the best evidence; and any use of a company-provided vehicle that isn't substantiated as business use is included in income. ([CG-MCE-077#S04](#s-CG-MCE-077-S04))

- <a id="s-CG-MCE-077-S38"></a>Neither the employer nor the employee may use a special valuation rule to value a benefit provided after December 31, 1992 unless one of these conditions is satisfied: the employer treats the value of the benefit as wages for reporting purposes within the time for filing the returns (including extensions) for the taxable year in which the benefit is provided; the employee includes the value in income within that same time; the employee is not a control employee as defined in paragraphs (f)(5) and (f)(6); or the employer demonstrates a good faith effort to treat the benefit correctly for reporting purposes. _(jurisdiction: United States — federal tax law administered by the Internal Revenue Service / Department of the Treasury (26 CFR part 1, under section 61 of the Internal Revenue Code of 1986), entity_scope: Employers providing fringe benefits and the persons performing the related services to whom the benefits are taxable (the section's 'employees', which it says need not be employees of the provider), effective_from: 1993-01-01, conditions: 26 CFR annual edition revised as of April 1, 2025 (heading '26 CFR Ch. I (4–1–25 Edition)'); paragraph (a)(6): except as otherwise provided, this section is effective as of January 1, 1989 with respect to fringe benefits provided after December 31, 1988)_ `CG-MCE-077#S38`
  > “Neither the employer
nor the employee may use a special
valuation rule to value a benefit provided after December 31, 1992, unless
one of the following conditions is satisfied—
(A) The employer treats the value of
the benefit as wages for reporting purposes within the time for filing the returns for the taxable year (including
extensions) in which the benefit is provided;
(B) The employee includes the value
of the benefit in income within the
time for filing the returns for the taxable year (including extensions) in
which the benefit is provided;
(C) The employee is not a control employee as defined in paragraphs (f)(5)
and (f)(6) of this section; or
(D) The employer demonstrates a
good faith effort to treat the benefit
correctly for reporting purposes.” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.61-21 - Taxation of fringe benefits](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol2/pdf/CFR-2025-title26-vol2-sec1-61-21.pdf), 2025-04-01; § 1.61–21(c)(3)(ii) Conditions on the use of special valuation rules for benefits provided after December 31, 1992, p. 34. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S39"></a>The actual value of fringe benefits provided during a calendar year (or other period as explained under the special accounting rule) must be determined by January 31 of the following year, and the employer must report the actual value on Form 941 (or Form 943, 944, or CT-1) and Form W-2. _(jurisdiction: United States (federal), entity_scope: Employers providing fringe benefits to employees (and other recipients of services) for US federal employment tax purposes, effective_from: 2026-01-01, effective_to: 2026-12-31)_ `CG-MCE-077#S39`
  > “The actual value of fringe benefits provided during a calendar year (or other period as explained under Special accounting rule , earlier in this section) must be determined by January 31 of the following year. You must report the actual value on Form 941 (or Form 943, 944, or CT-1) and Form W-2.” — [Internal Revenue Service, Department of the Treasury — Publication 15-B (2026), Employer’s Tax Guide to Fringe Benefits](https://www.irs.gov/publications/p15b), 2026-04-30; 4. Rules for Withholding, Depositing, and Reporting / Amount to report on Form 941 (or Form 943, 944, or CT-1) and Form W-2.. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

## Does a tracking device count as the record?
<a id="need-CG-MCE-077-C5"></a>

- <a id="s-CG-MCE-077-S41"></a>Generally an adequate record must be written; however a record of the business use of listed property, such as a computer or automobile, prepared in a computer memory device with the aid of a logging program will constitute an adequate record. _(jurisdiction: United States (federal; Internal Revenue Code section 274(d) and 26 CFR part 1), entity_scope: Any taxpayer recording business use of listed property, including an automobile, effective_from: taxable years beginning after December 31, 1985 (paragraph (a): on or after January 1, 1986), conditions: The written-record requirement is hedged by “Generally”; The kinds of listed property named are introduced by “such as” and are not a closed list; The provision addresses a record prepared in a computer memory device with the aid of a logging program; it states no further conditions on such a record here)_ `CG-MCE-077#S41`
  > “(2) Written record. Generally, an adequate record must be written. However,
a record of the business use of listed
property, such as a computer or automobile, prepared in a computer memory device with the aid of a logging
program will constitute an adequate
record.” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.274-5T - Substantiation requirements (temporary)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol4/pdf/CFR-2025-title26-vol4-sec1-274-5T.pdf), 2025-04-01; § 1.274–5T(c)(2)(ii)(C)(2) “Written record”, printed p. 999. Verified 2026-09-09.

- <a id="s-CG-MCE-077-S42"></a>For purposes of substantiating the business/investment use of listed property an employer provides to an employee, and for the information required by paragraphs (d)(2) and (3), the employer may rely on adequate records maintained by the employee or on the employee's own statement if corroborated by other sufficient evidence, unless the employer knows or has reason to know that the statement, records, or other evidence are not accurate. _(jurisdiction: United States (federal; Internal Revenue Code section 274(d) and 26 CFR part 1), entity_scope: Employers relying on records or statements from employees provided with listed property, effective_from: taxable years beginning after December 31, 1985 (paragraph (a): on or after January 1, 1986), conditions: Reliance is unavailable where the employer knows or has reason to know the material is not accurate)_ `CG-MCE-077#S42`
  > “For
purposes of substantiating the business/investment use of listed property
that an employer provides to an employee and for purposes of the information required by paragraph (d)(2) and
(3) of this section, the employer may
rely on adequate records maintained by
the employee or on the employee’s own
statement if corroborated by other sufficient evidence unless the employer
knows or has reason to know that the
statement, records, or other evidence
are not accurate.” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.274-5T - Substantiation requirements (temporary)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol4/pdf/CFR-2025-title26-vol4-sec1-274-5T.pdf), 2025-04-01; § 1.274–5T(e)(2)(ii) “Reliance on employee records”, printed p. 1003. Verified 2026-09-09.

- <a id="s-CG-MCE-077-S43"></a>To constitute an adequate record substantiating business/investment use of listed property, the record must contain sufficient information as to each element of every business/investment use; however, the level of detail required in such a record may vary depending upon the facts and circumstances. _(jurisdiction: United States (federal; Internal Revenue Code section 274(d) and 26 CFR part 1), entity_scope: Any taxpayer substantiating business/investment use of listed property, including a vehicle, effective_from: taxable years beginning after December 31, 1985 (paragraph (a): on or after January 1, 1986), conditions: The required level of detail is expressly variable with the facts and circumstances)_ `CG-MCE-077#S43`
  > “In order to constitute an adequate record (within the meaning of
section 274(d) and this paragraph
(c)(2)(ii)), which substantiates business/
investment use of listed property (as
defined in § 1.280F–6T(d)(3)), the record
must contain sufficient information as
to each element of every business/investment use. However, the level of detail required in an adequate record to
substantiate business/investment use
may vary depending upon the facts and
circumstances.” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.274-5T - Substantiation requirements (temporary)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol4/pdf/CFR-2025-title26-vol4-sec1-274-5T.pdf), 2025-04-01; § 1.274–5T(c)(2)(ii)(C)(1) “Substantiation of business use of listed property — Degree of substantiation”, printed p. 999. Verified 2026-09-09.

_Partly established. Established: Whether records generated by an automated mileage or telematics system satisfy the record requirement on their own (S41). Missing: What has to be added to or done with such data for it to serve as the record._

## Working with telematics data
<a id="need-CG-MCE-077-P9"></a>

- See above: Generally an adequate record must be written; however a record of the business use of listed property, such as a computer or automobile, prepared in a computer memory device with the aid of a logging program will constitute an adequate record. ([CG-MCE-077#S41](#s-CG-MCE-077-S41))

- See above: For purposes of substantiating the business/investment use of listed property an employer provides to an employee, and for the information required by paragraphs (d)(2) and (3), the employer may rely on adequate records maintained by the employee or on the employee's own statement if corroborated by other sufficient evidence, unless the employer knows or has reason to know that the statement, records, or other evidence are not accurate. ([CG-MCE-077#S42](#s-CG-MCE-077-S42))

- <a id="s-CG-MCE-077-S44"></a>Travelers states that telematics devices can also capture data about driving behaviours, giving speeding, braking, abrupt lane changes and idling as examples ('such as'); the document does not say these are the only behaviours captured, and does not state what any telematics record must contain. _(jurisdiction: United States (Travelers US business-insurance risk control content; US-sourced statistics: trafficsafety.org, cdc.gov, osha.gov), entity_scope: Businesses operating vehicle fleets with drivers (fleet managers/employers), conditions: Applies where the business operates a vehicle telematics system)_ `CG-MCE-077#S44`
  > “These devices can also capture data about driving behaviors, such as speeding, braking, abrupt lane changes and idling.” — [The Travelers Indemnity Company (Travelers Risk Control) — Vehicle Telematics Program Guidelines](https://www.travelers.com/resources/business-topics/driver-fleet-safety/vehicle-telematics-program-guidelines), Web article, no edition or date shown on the page; footer carries '©2026 The Travelers Indemnity Company'; labelled '1 minute' read under 'Driver & Fleet Safety'; Body, opening paragraph under the article title 'Vehicle Telematics Program Guidelines' (Prepare & Prevent > Topics > Driver & Fleet Safety); no section or page numbers in the document. Verified 2026-09-09.

- <a id="s-CG-MCE-077-S45"></a>Travelers states that the driver feedback session is two-way and that there may be circumstances that the telematics data alone does not explain; the statement is made about safe-driving feedback sessions, not about any record-keeping obligation. _(jurisdiction: United States (Travelers US business-insurance risk control content; US-sourced statistics: trafficsafety.org, cdc.gov, osha.gov), entity_scope: Businesses operating vehicle fleets with drivers (fleet managers/employers), conditions: Applies where the business operates a vehicle telematics system; Stated in the context of a safe driving feedback and coaching session with the driver)_ `CG-MCE-077#S45`
  > “The feedback session is a two-way street. There may be circumstances that are not explained by the data alone.” — [The Travelers Indemnity Company (Travelers Risk Control) — Vehicle Telematics Program Guidelines](https://www.travelers.com/resources/business-topics/driver-fleet-safety/vehicle-telematics-program-guidelines), Web article, no edition or date shown on the page; footer carries '©2026 The Travelers Indemnity Company'; labelled '1 minute' read under 'Driver & Fleet Safety'; Sub-bullet under 'Discuss your safe driving feedback program. Let drivers know that:'. Verified 2026-09-09.

_Partly established. Established: Whether it discharges the obligation on its own (S41). Missing: What a record produced by an automated tracking or telematics system must still contain; Who reviews it._

## How long each record has to be kept
<a id="need-CG-MCE-077-C6"></a>

- <a id="s-CG-MCE-077-S46"></a>Except as otherwise provided in the sentence that follows it, every person required by the regulations in 26 CFR part 31 to keep records in respect of a tax — whether or not that person incurs liability for the tax — must maintain those records for at least four years after the later of the due date of the tax for the return period to which the records relate or the date the tax is paid. _(jurisdiction: United States (federal), entity_scope: every person required by the regulations in 26 CFR part 31 to keep records in respect of a tax, whether or not that person incurs liability for the tax, conditions: subject to the exception stated in the following sentence (records of claimants under paragraph (c)))_ `CG-MCE-077#S46`
  > “(2) Except as otherwise provided in
the following sentence, every person
required by the regulations in this part
to keep records in respect of a tax
(whether or not such person incurs liability for such tax) shall maintain
such records for at least four years
after the due date of such tax for the
return period to which the records relate, or the date such tax is paid,
whichever is the later.” — [U.S. Government Publishing Office / Internal Revenue Service, Department of the Treasury (Code of Federal Regulations) — 26 CFR 31.6001-1 - Records in general (employment taxes)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol17/pdf/CFR-2025-title26-vol17-sec31-6001-1.pdf), 2025-04-01; § 31.6001–1 Records in general, paragraph (e)(2) Place and period for keeping records (subpart G, 26 CFR Ch. I (4–1–25 Edition), printed page 335). Verified 2026-09-09.

- <a id="s-CG-MCE-077-S47"></a>Records must be kept as long as they may be needed for the administration of any provision of the Internal Revenue Code, which generally means keeping records supporting a deduction (or an item of income) for 3 years from the date the return claiming the deduction is filed. _(jurisdiction: United States — federal income tax administered by the IRS, entity_scope: Taxpayers deducting business car expenses; the publication states it is for employees and sole proprietors with business-related travel, meal, gift, or transportation expenses, accounting_basis: U.S. federal income tax rules (not financial-reporting/GAAP basis), effective_from: 2025 tax year — Publication 463 (2025), for use in preparing 2025 Returns)_ `CG-MCE-077#S47`
  > “You must keep records as long as they may be needed for the administration of any provision of the Internal Revenue Code. Generally, this means you must keep records that support your deduction (or an item of income) for 3 years from the date you file the income tax return on which the deduction is claimed.” — [Internal Revenue Service, U.S. Department of the Treasury — Publication 463 (2025), Travel, Gift, and Car Expenses](https://www.irs.gov/publications/p463), 2026-04-30; Chapter 5. Recordkeeping → How Long To Keep Records and Receipts. Verified 2026-09-09.

- <a id="s-CG-MCE-077-S48"></a>Each motor carrier must maintain a driver qualification file for each driver it employs. _(jurisdiction: United States — federal (49 CFR chapter III, Federal Motor Carrier Safety Administration regulations), entity_scope: Motor carriers, in respect of each driver they employ (§ 391.51 addresses “Each motor carrier”))_ `CG-MCE-077#S48`
  > “(a) Each motor carrier shall maintain
a driver qualification file for each driver it employs.” — [Federal Motor Carrier Safety Administration, U.S. Department of Transportation (49 CFR), published by the U.S. Government Publishing Office — 49 CFR 391.51 - General requirements for driver qualification files](https://www.govinfo.gov/content/pkg/CFR-2025-title49-vol5/pdf/CFR-2025-title49-vol5-sec391-51.pdf), 2025-10-01; Subpart F—Files and Records, § 391.51 General requirements for driver qualification files, paragraph (a), first sentence; printed page 526. Verified 2026-09-09.

- <a id="s-CG-MCE-077-S49"></a>Except as provided in paragraph (d) of § 391.51, each driver's qualification file must be retained for as long as the driver is employed by that motor carrier and for three years after that employment ends. _(jurisdiction: United States — federal (49 CFR chapter III, Federal Motor Carrier Safety Administration regulations), entity_scope: Motor carriers, in respect of each driver they employ (§ 391.51 addresses “Each motor carrier”), conditions: Except as provided in paragraph (d) of § 391.51)_ `CG-MCE-077#S49`
  > “(c) Except as provided in paragraph
(d) of this section, each driver’s qualification file shall be retained for as
long as a driver is employed by that
motor carrier and for three years
thereafter.” — [Federal Motor Carrier Safety Administration, U.S. Department of Transportation (49 CFR), published by the U.S. Government Publishing Office — 49 CFR 391.51 - General requirements for driver qualification files](https://www.govinfo.gov/content/pkg/CFR-2025-title49-vol5/pdf/CFR-2025-title49-vol5-sec391-51.pdf), 2025-10-01; Subpart F—Files and Records, § 391.51 General requirements for driver qualification files, paragraph (c); printed page 527. Verified 2026-09-09.

_Not established from an authoritative source._

## Where the logs, the policy and the pay records sit
<a id="need-CG-MCE-077-P10"></a>

- See above: The employer must retain a copy of the adequate records maintained by the employee, or of the other sufficient evidence, if available. ([CG-MCE-077#S17](#s-CG-MCE-077-S17))

- See above: Except as otherwise provided in the sentence that follows it, every person required by the regulations in 26 CFR part 31 to keep records in respect of a tax — whether or not that person incurs liability for the tax — must maintain those records for at least four years after the later of the due date of the tax for the return period to which the records relate or the date the tax is paid. ([CG-MCE-077#S46](#s-CG-MCE-077-S46))

- See above: Records must be kept as long as they may be needed for the administration of any provision of the Internal Revenue Code, which generally means keeping records supporting a deduction (or an item of income) for 3 years from the date the return claiming the deduction is filed. ([CG-MCE-077#S47](#s-CG-MCE-077-S47))

- <a id="s-CG-MCE-077-S50"></a>Records of the business use of the car must be kept for each year of the recovery period. _(jurisdiction: United States — federal income tax administered by the IRS, entity_scope: Taxpayers deducting business car expenses; the publication states it is for employees and sole proprietors with business-related travel, meal, gift, or transportation expenses, accounting_basis: U.S. federal income tax rules (not financial-reporting/GAAP basis), effective_from: 2025 tax year — Publication 463 (2025), for use in preparing 2025 Returns)_ `CG-MCE-077#S50`
  > “You must keep records of the business use of your car for each year of the recovery period.” — [Internal Revenue Service, U.S. Department of the Treasury — Publication 463 (2025), Travel, Gift, and Car Expenses](https://www.irs.gov/publications/p463), 2026-04-30; Chapter 5. Recordkeeping → How Long To Keep Records and Receipts. Verified 2026-09-09.

_Not established from an authoritative source._

## A period whose records were never kept
<a id="need-CG-MCE-077-P11"></a>

- See above: The section 274(d) substantiation limitation supersedes the Cohan v. Commissioner doctrine of close approximation, and section 274(d) contemplates that no deduction or credit is to be allowed a taxpayer on the basis of such approximations or unsupported testimony of the taxpayer. ([CG-MCE-077#S03](#s-CG-MCE-077-S03))

- <a id="s-CG-MCE-077-S51"></a>Corroborative evidence required to support a statement not made at or near the time of the expenditure or use must have a high degree of probative value, so as to elevate that statement and evidence to the level of credibility reflected by a record made at or near the time of the expenditure or use supported by sufficient documentary evidence. _(jurisdiction: United States (federal; Internal Revenue Code section 274(d) and 26 CFR part 1), entity_scope: Any taxpayer whose statement was not made at or near the time of the expenditure or use, effective_from: taxable years beginning after December 31, 1985 (paragraph (a): on or after January 1, 1986))_ `CG-MCE-077#S51`
  > “Thus, the corroborative
evidence required to support a statement not make at or near the time of
the expenditure or use must have a
high degree of probative value to elevate such statement and evidence to
the level of credibility reflected by a
record made at or near the time of the
expenditure or use supported by sufficient documentary evidence.” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.274-5T - Substantiation requirements (temporary)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol4/pdf/CFR-2025-title26-vol4-sec1-274-5T.pdf), 2025-04-01; § 1.274–5T(c)(1) “Rules of substantiation — In general”, printed p. 998. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S52"></a>Except as provided in paragraph (c)(3)(ii)(B), a taxpayer may maintain an adequate record for portions of a taxable year and use that record to substantiate the business/investment use of listed property for all or a portion of the taxable year, if the taxpayer can demonstrate by other evidence that the periods for which an adequate record is maintained are representative of the use for the taxable year or a portion of it. _(jurisdiction: United States (federal; Internal Revenue Code section 274(d) and 26 CFR part 1), entity_scope: Taxpayers substantiating business/investment use of listed property, effective_from: taxable years beginning after December 31, 1985 (paragraph (a): on or after January 1, 1986), conditions: Conditioned on demonstrating by other evidence that the recorded periods are representative; Subject to the pooled-vehicle exception in paragraph (c)(3)(ii)(B))_ `CG-MCE-077#S52`
  > “Except
as provided in paragraph (c)(3)(ii)(B) of
this section, a taxpayer may maintain
an adequate record for portions of a
taxable year and use that record to
substantiate the business/investment
use of listed property for all or a portion of the taxable year if the taxpayer
can demonstrate by other evidence
that the periods for which an adequate
record is maintained are representative
of the use for the taxable year or a portion thereof.” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.274-5T - Substantiation requirements (temporary)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol4/pdf/CFR-2025-title26-vol4-sec1-274-5T.pdf), 2025-04-01; § 1.274–5T(c)(3)(ii)(A) “Sampling — In general”, printed p. 1000. Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

- <a id="s-CG-MCE-077-S53"></a>Where the taxpayer establishes that the failure to produce adequate records is due to the loss of those records through circumstances beyond the taxpayer's control, such as destruction by fire, flood, earthquake, or other casualty, the taxpayer has a right to substantiate a deduction by reasonable reconstruction of his expenditures or use. _(jurisdiction: United States (federal; Internal Revenue Code section 274(d) and 26 CFR part 1), entity_scope: Taxpayers whose records were lost through circumstances beyond their control, effective_from: taxable years beginning after December 31, 1985 (paragraph (a): on or after January 1, 1986), conditions: Conditioned on the taxpayer establishing that the failure to produce records is due to loss beyond his control; The causes named (fire, flood, earthquake) are introduced by “such as” and closed only by “other casualty”)_ `CG-MCE-077#S53`
  > “Where
the taxpayer establishes that the failure to produce adequate records is due
to the loss of such records through circumstances beyond the taxpayer’s control, such as destruction by fire, flood,

1000

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Internal Revenue Service, Treasury

§ 1.274–5T

earthquake, or other casualty, the taxpayer shall have a right to substantiate a deduction by reasonable reconstruction of his expenditures or use.” — [Internal Revenue Service / Department of the Treasury (26 CFR), published by the U.S. Government Publishing Office — 26 CFR 1.274-5T - Substantiation requirements (temporary)](https://www.govinfo.gov/content/pkg/CFR-2025-title26-vol4/pdf/CFR-2025-title26-vol4-sec1-274-5T.pdf), 2025-04-01; § 1.274–5T(c)(5) “Loss of records due to circumstances beyond control of the taxpayer”, printed pp. 1000–1001 (the sentence runs across the page break; the intervening page furniture appears in the quote). Verified 2026-09-09.
  _Flagged for professional review — a bookkeeper or accountant should confirm this applies to your situation._

## What your insurer expects you to hold
<a id="need-CG-MCE-077-C8"></a>

- See above: Travelers Risk Control advises reviewing all accidents and incidents as part of monitoring driver performance. ([CG-MCE-077#S26](#s-CG-MCE-077-S26))

- <a id="s-CG-MCE-077-S54"></a>Travelers Risk Control advises businesses to obtain motor vehicle records (MVRs) for anyone who drives on behalf of the company. _(jurisdiction: United States, entity_scope: Businesses that have drivers driving on behalf of the company (fleet operators and employers of driving employees), conditions: Published as guidance: the section is headed 'Four steps to help identify safer drivers' and is stated to be informational only, not a policy requirement; Travelers states the content does not, and is not intended to, affect the provisions or coverages of any insurance policy or bond issued by Travelers)_ `CG-MCE-077#S54`
  > “Obtain MVRs for anyone who drives on behalf of your company.” — [The Travelers Indemnity Company (Travelers Risk Control) — 4 Steps to Safer Drivers](https://www.travelers.com/resources/business-topics/driver-fleet-safety/4-steps-to-identify-your-safest-drivers), No edition or version stated on the page; site notice reads '©2026 The Travelers Indemnity Company. All rights reserved.'; Section 'Four steps to help identify safer drivers', step '1. Check the MVR (motor vehicle record)', bullet 1. Verified 2026-09-09.

- <a id="s-CG-MCE-077-S55"></a>Travelers Risk Control advises reviewing MVRs regularly to be sure they meet the company's own standards; the standards referred to are the employer's, not ones set by this document. _(jurisdiction: United States, entity_scope: Businesses that have drivers driving on behalf of the company (fleet operators and employers of driving employees), conditions: Published as guidance: the section is headed 'Four steps to help identify safer drivers' and is stated to be informational only, not a policy requirement; Travelers states the content does not, and is not intended to, affect the provisions or coverages of any insurance policy or bond issued by Travelers; The document does not state what the standards must contain or how often 'regularly' is)_ `CG-MCE-077#S55`
  > “Review MVRs regularly to be sure they meet your standards.” — [The Travelers Indemnity Company (Travelers Risk Control) — 4 Steps to Safer Drivers](https://www.travelers.com/resources/business-topics/driver-fleet-safety/4-steps-to-identify-your-safest-drivers), No edition or version stated on the page; site notice reads '©2026 The Travelers Indemnity Company. All rights reserved.'; Section 'Four steps to help identify safer drivers', step '1. Check the MVR (motor vehicle record)', bullet 2. Verified 2026-09-09.

- <a id="s-CG-MCE-077-S56"></a>Travelers states that this content is provided for informational purposes only, that it does not and is not intended to provide legal, technical or other professional advice or otherwise affect the provisions or coverages of any insurance policy or bond issued by Travelers, and that Travelers disclaims all warranties whatsoever. _(jurisdiction: United States, entity_scope: Any reader of this Travelers Risk Control content; any insurance policy or bond issued by Travelers, conditions: Self-declared status of the document itself; The document states no consequence for cover arising from any of its recommendations, including where driver or incident records are not kept)_ `CG-MCE-077#S56`
  > “This content is provided for informational purposes only.  It does not, and it is not intended to, provide legal, technical or other professional advice, or otherwise affect, the provisions or coverages of any insurance policy or bond issued by Travelers. Travelers disclaims all warranties whatsoever.” — [The Travelers Indemnity Company (Travelers Risk Control) — 4 Steps to Safer Drivers](https://www.travelers.com/resources/business-topics/driver-fleet-safety/4-steps-to-identify-your-safest-drivers), No edition or version stated on the page; site notice reads '©2026 The Travelers Indemnity Company. All rights reserved.'; Footer disclaimer, final paragraph of the page, following the 'Legal & Compliance' footer links. Verified 2026-09-09.

_Not established from an authoritative source._

## Not yet fully established from an authoritative source

- Establish what a substantiating record of business use of an employer-provided vehicle must contain, what must equally be recorded about use that is not business use, including travel between the employee's home and a workplace, the expectation that it be made at or near the time of use, what may stand in place of such a record for a period in which none was made at the time, and who is expected to produce and retain it, including where a vehicle is driven by more than one employee or pooled so that no single driver holds it. _(partly established)_
- Establish how travel between an employee's home and a workplace in an employer-provided vehicle is characterised, and identify the classes of exception recognised for that characterisation. _(partly established)_
- Establish which vehicles are recognised as ones whose personal use is treated as impractical, and the conditions a written policy prohibiting personal use or limiting it to commuting must satisfy to be relied on. _(partly established)_
- Establish whether records generated by an automated mileage or telematics system satisfy the record requirement on their own, and what has to be added to or done with such data for it to serve as the record. _(partly established)_
- Establish how long vehicle use logs, the vehicle-use policy, driver acknowledgements and the resulting wage records must be retained, and under which retention requirement each falls. _(not established)_
- Establish what the employer must hold for each vehicle alongside the driver's use record in order to support the costs it claims for that vehicle, including the record assigning the vehicle to a driver and the fuel, toll and maintenance records tied to it, and what the employer must be able to produce if those costs are queried. _(not established)_
- Establish what the business's insurer requires to be held for a vehicle it owns and for the employees permitted to drive it, including the record of accepted drivers and the file of incidents and claims, and what the position is on cover where those records are not kept. _(not established)_
- Address taking the vehicle home specifically, establishing how that use is categorised and what has to be recorded about it. _(partly established; below the required authority class)_
- Establish who is responsible for each record: the driver producing it, the employer collecting, reviewing and retaining it, and who resolves exceptions, together with the cadence on which that happens. _(partly established)_
- Establish the employer-side record set that sits alongside the driver's log: vehicle assignment, the written vehicle-use policy, the driver's acknowledgement, the fuel, toll and maintenance records tied to the vehicle, and the incident and insurance file. _(partly established; below the required authority class)_
- Distinguish the categories that change the requirement: vehicles whose design or marking makes personal use impractical, and written policies prohibiting personal use or limiting it to commuting, establishing the conditions each depends on. _(partly established)_
- Address vehicles driven by more than one employee or pooled, establishing how the record set and the responsibility for it work when no single driver holds the vehicle. _(not established)_
- Address records produced by automated tracking or telematics systems, establishing what such a record must still contain, who reviews it, and whether it discharges the obligation on its own. _(partly established)_
- Establish the retention requirement for the logs, the policy, the acknowledgements and the resulting pay records, and where each sits relative to the payroll and asset files. _(not established)_

## Related

- [Should the business own the truck (and put it on the balance sheet), or should I keep it in my name and get paid for the miles?](https://uppago.com/resources/should-the-business-own-the-truck-and-put-it-on-the-balance-sheet-or-should-i)
- [What payroll records does an employer have to keep, and for how long?](https://uppago.com/resources/what-payroll-records-does-an-employer-have-to-keep-and-for-how-long)

_Reference date 2026-09-07. Statements are quoted verbatim from their sources; scope and verification dates are shown on each._