My employer has offered the following arrangement. I'm not sure I understand this, or agree with it. Please offer any advice or opinion. I will provide a vehicle for use at work. In exchange I am to receive a monthly check that is not taxed in any way. It is described loosely as "vehicle reimbursement" although I do not submit any receipts or expenses. It has been suggested that all I need to do is keep track of mileage and declare this on my individual taxes (I assume mileage x $.565) as a deduction. I assume I would need to declare the payment as income.
Does this sound reasonable?