Personal use of company car

[dandor1]

My wife was given a company car to drive. It is wrapped with the company name, logo and business info. She was told to use it for business and personal use as this would be free advertising for them. They pay for all expenses and do not include this as income on her W-2. Do we need to report this on our personal tax return?

[RashidaS · Accepted solution]

As you mentioned all expense paid by the company also these expenses are not included on her W-2. 

No, you cannot deduct any expense on your personal tax return.

[dandor1]

Thanks for the reply, but I didn't ask if I could deduct it. I asked if we needed to report it as income.

[RashidaS]

Because these expenses are not included on her W-2 as income, no need to include as income too.

[dandor1]

Great! Thanks very much for the quick response!

[matthew_bean]

Just to clarify, If the company doesn't report that I have a company car for business use than I do not need to report it as income?

[RashidaS]

Yes, usually a company car is company's business expense not the users benefit.