One of the good things about owning a business is that you can give yourself some nice perks, like a company car. This Special Report explains strategies to: (1) minimize the tax hit on corporate-owned cars provided to you and other key employees and (2) maximize the tax savings for your corporation.
Rules for shareholder/employees
Let's say you run your business as a C or S corporation. You're an employee too, which means you can receive company-paid
Of course, the IRS will treat you as receiving additional taxable compensation for the personal-use factor. Your added compensation would equal the amount it would cost to lease the same vehicle, multiplied by your personal-use percentage during the year. This amount shows up as extra salary on your W-2 and is subject to income and employment taxes.
That's the...(register to read more)
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Small Business Tax Deduction Strategies
- IRS scores high on taxpayer help, but expect to wait
- Workplace chaplains boost morale, productivity
- Know what's free speech, insubordination
- IRS OKs business deductions for certain local lodging costs