Fixed and Variable Rate (FAVR) Glossary
The definitive source to Fixed and Variable Rate (FAVR) terminology.
Glossary
A
Accountable Allowance
Accountable allowance is a program for business use of personal vehicles.
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Business Use Percentage
The portion of a driver's total mileage assumed to be business mileage.
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D
Depreciation
On FAVR, depreciation refers to the depreciation component of a driver’s reimbursement.
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Federal Rate, The
A safe harbor reimbursement rate used in place of actual business expenses.
Read MoreFive-Thousand Mile Rule
The 5,000 mile rule in Fixed and Variable Rate (FAVR) reimbursement programs.
Read MoreFixed and Variable Rate (FAVR)
FAVR reimbursement programs, the importance of IRS compliance, tax savings potential.
Read MoreFixed Reimbursement
Fixed expenses in Fixed and Variable Rate vehicle reimbursement programs.
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M
N
Non-Taxable Limit
The non-taxable limit is the maximum reimbursement that a driver can receive without paying tax.
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Q
Qualified Nonpersonal Use Vehicles
Specialized vehicles designed exclusively for business-related purposes.
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T
V
Variable Reimbursement
Variable reimbursements are one of the two main components of FAVR reimbursements.
Read MoreVehicle Cost Compliance
Vehicle cost compliance rules, one of the three main FAVR compliance rules.
Read MoreVehicle Profile
Vehicle profiles (or program standard vehicles) and how they factor into FAVR.
Read MoreVehicle Property Taxes
A vehicle property tax is a type of personal property tax that some state and local governments require.
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