Employer provides employee with a leased automobile paid for by the company. Employee uses vehicle for personal use and driving to and from work. No business mileage incurred. It appears to me to be compensation; how much to include in W-2?
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It depends on the value of the vehicle. Page 13-31 of the Taxbook has a chart and the mileage optional method.In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de Tocqueville -
Apparently I was not looking in the correct place because I researched this in TTB before I posted. Thanks. I also downloaded the IRS Taxable Fringe Benefit booklet which describes everything. So, it looks like FMV table amt is reported in Boxes 1,3,5 subj to all taxes. (Of course, employer has been doing this since Feb 2011 and not withheld a dime.) So in this instance, does the employer deduct as an expense the actual costs of the vehicle (lease payment + insurance + taxes) or the FMV which is reported to the employee in his compensation package as salary? Seems like it should be actual expense since the FMV in W-2 is kind of a phantom figure. They two are pretty close anyway.Last edited by Burke; 01-11-2012, 12:04 PM.Comment
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