Accont name?

[tacks]

Sole shareholder gets personal use of company vehicle. I will report this taxable fringe benefit on a corrected W2C.

What is the name of GL account on the corporation? Fringe Benefit Expense? Employee Benefit?

(haven't seen this in a while, thanks in advance)

EDIT: Good heavens! I am an atrocious speller today, aren't i!

[Black Bart]

Dear Tackster,

Sole shareholder gets personal use of company vehicle. I will report this taxable fringe benefit on a corrected W2C.

Considering that it would be a dang shame for a veteran boarder's post to go ignored quietly into the night and although it's been many a moon since I've done a corporate return, I shall attempt to remedy this deplorable situation.

What is the name of GL account on the corporation? Fringe Benefit Expense? Employee Benefit?

What about "Employee benefits" ? Considering that the only guidance given is the 1120's line 26 which lists "Other deductions" and then invites us to "Attach schedule," I'd say that pretty much leaves us on our own (look at some of your clients' homemade descriptions and you'll see sump'n like "Ernie's Slush Fund" and "Jackie's makeup expense at Dillard's." Even Schedule C lists it as "Employee benefit programs," so I kind of think they're leaning toward EB as a preferred description. Anyway, that looks as professional as anything and it'll fly with IRS no matter what you put down (never yet seen 'em kick about such).

EDIT: Good heavens! I am an
atrocious speller today, aren't i!

Aw, ah've sene whirse.


P.S. Who was it used to add this tag -- Confucius say "He who sit on tack is better off" -- to his posts? I bet it was that jokester Veritas and if he was referrin' to you, he needs a good reprimandin'.

[ChEAr$]

Sole shareholder gets personal use of company vehicle. I will report this taxable fringe benefit on a corrected W2C.

What is the name of GL account on the corporation? Fringe Benefit Expense? Employee Benefit?

(haven't seen this in a while, thanks in advance)

EDIT: Good heavens! I am an atrocious speller today, aren't i!

Seems the only issue in case of a sole shareholder/employee using a company vehicle
is FICA tax, since even if taxable wages increase, and corporate profit decreases by like amount, that's a wash.

So I simply debit shareholder's loan account or distributions and credit federal taxes payable. There's no change in income tax liability, IRS gets the FICA tax and everybody's happy.

But in the case of two or more shareholders using company vehicles, I try to persuade them to annually reimburse the corporation for personal mileage used. This keeps it clean.

[Black Bart]

Hey, Alabam!

Seems the only issue in case of a sole shareholder/employee using a company vehicle
is FICA tax, since even if taxable wages increase, and corporate profit decreases by like amount, that's a wash.

So I simply debit shareholder's loan account or distributions and credit federal taxes payable. There's no change in income tax liability, IRS gets the FICA tax and everybody's happy.

But in the case of two or more shareholders using company vehicles, I try to persuade them to annually reimburse the corporation for personal mileage used. This keeps it clean.

I found this lost post first. What's the idea of bustin' in on it with the correct answer? You dang Deep South savants are killin' off my first, fast, funny, flip answers right and left. Why don'cha go fry somethin' or somethin'?

[Maribeth]

Sole shareholder gets personal use of company vehicle. I will report this taxable fringe benefit on a corrected W2C.

What is the name of GL account on the corporation? Fringe Benefit Expense? Employee Benefit?

(haven't seen this in a while, thanks in advance)

EDIT: Good heavens! I am an atrocious speller today, aren't i!

Since you are reporting this on a W-2, I would simply report the entire amount of the shareholder's W-2 income on the Officer compensation line. That way the total compensation paid by the corporation will agree to the total compensation reported to IRS on Form 941 and the total compensation reported to SSA.

Your entry to record the personal use of the vehicle would be a credit to auto expense and a debit to officer salaries.

Maribeth

[ChEAr$]

I found this lost post first. What's the idea of bustin' in on it with the correct answer? You dang Deep South savants are killin' off my first, fast, funny, flip answers right and left. Why don'cha go fry somethin' or somethin'?

Well now, shore didn't mean to steal your thunder but just trying to halp!

As for fryin', you'd be amazed but I don't even like fried chicken.

[Black Bart]

Dang it! Another one!

Smart people -- they're everywhere, they're everywhere (and she's even from up North - maybe needs to go steam some broccoli or sump'n)!

[Black Bart]

I

...you'd be amazed but I don't even like fried chicken.

promise I won't breathe a word or tell a soul about this, but you better stop puttin' it on the Net if you don't wanna get kicked out of the Sons of the Confederacy for such apostasy.

[Maribeth]

Dang it! Another one!

Smart people -- they're everywhere, they're everywhere (and she's even from up North - maybe needs to go steam some broccoli or sump'n)!

Hmmmm . . . . . . "needs to go steam some broccoli or sump'n" . . . . . . . . a euphemism perhaps? If so, am I flattered??

Maribeth

[ChEAr$]

promise I won't breathe a word or tell a soul about this, but you better stop puttin' it on the Net if you don't wanna get kicked out of the Sons of the Confederacy for such apostasy.

Can't get kicked out, for my membership lapsed some years ago when I didn't renew.
Besides, all they wanted to do was fight about the Georgia flag, an issue that still hasn't gone away entirely. But I still have one of the older Georgia flags and I fly it occasionally outside my home.

Speaking of fried foods, have you ever had fried Camenbert (cheese) with a french rose' wine?

[Black Bart]

No, no...or yes, yes and no offense, etc.

Hmmmm . . . . . . "needs to go steam some broccoli or sump'n" . . . . . . . . a euphemism perhaps? If so, am I flattered??

Maribeth

Harlan gave a good answer (better'n mine) and I was just horsin' around with the Cheers-man and couldn't resist the fry remark and then you came along with a better answer than his and I was inspired to spin that broccoli remark off the one I made to him about fryin' something. Hmm, how to explain? See, people are always takin' shots at Southern red state rednecks like me and him (go fry sump'n) and then you came along from uber-liberal WA with...what was it (mashed yeast?) or whatever/however Yankees cook up there where you're at.

Make sense? No? Well, sorry anyway and my apologies tofu (that was a Freudian slip, I swear!).

"I do not like broccoli. And I haven't liked it since I was a little kid and my mother made me eat it. And I'm President of the United States and I'm not going to eat any more broccoli." -- George W. Bush

[JohnH]

Hmmmm . . . . . . "needs to go steam some broccoli or sump'n" . . . . . . . . a euphemism perhaps? If so, am I flattered??

Maribeth

If you're not sure, then you can assume that almost anything someone in the South says about you is flattery or a compliment.... UNLESS they start the sentence with "Bless Her Heart". I'll guarantee that anything that follows those 3 words is going to rip you to shreds.

[Maribeth]

Dear Black Bart, I am flattered -- how sweet of you. You do, however, have me confused with my fellow Washingtonians who live on the other side of the mountains. I live in Spokane, which is about 30 miles from the state of Idaho. Need I say more?

Maribeth

[ChEAr$]

If you're not sure, then you can assume that almost anything someone in the South says about you is flattery or a compliment.... UNLESS they start the sentence with "Bless Her Heart". I'll guarantee that anything that follows those 3 words is going to rip you to shreds.

Ah, like this, JOhnH? (said of Black Bart) "Bless his little/big pea pickin' heart;
he's doing the best he can."

[veritas]

Not mine

P.S. Who was it used to add this tag -- Confucius say "He who sit on tack is better off" -- to his posts? I bet it was that jokester Veritas and if he was referrin' to you, he needs a good reprimandin'.

but I did admire it.