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Tax Planning/Tax on a Company Car
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Question
I am provided a car by my company and understand that I must pay tax on personnel use. Question; is it proper accounting practice for the company to identify the proper compensation for the personnel miles on that car and place this on my W2 at the end of the calendar year (which I would then pay tax on) or is it necessary for the company to collect the tax on the personnel use of that car during the actual calendar year (ie. throughout the calendar year pay period). Thank you
So, I assume you are in sales. I would ask the other sales people how they do it. My experience says that many companies just put it on your W2, but I would ask one of your colleagues how they handle it. There really isn't a wrong answer as long as you/your company is consistent year to year.
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Tax Planning
Richard Stolp
Expertise
My expertise is in collecting past due taxes and tax returns. Wage and bank levies, liens, Offer in Compromise, late filing. I spoke with over 20,000 people concerning their issues while I worked at the IRS (just retired).
Experience
Six plus years working for the the IRS in Collections. Worked with over 20,000 people on their IRS issues. Explained their options and usually worked out a solution while they were on the phone.
Publications
I have a tax related blog at: www.sallymae.typepad.com/collections
Education/Credentials
Masters Degree from Iowa State in Ames.
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