Tupperware Cars

[CJMartin]

When a direct seller sells at a certain level, the company gives them the choice of either a vehicle to drive with the insurance paid for (no car payments or lease payments are made either) or the cash equivalent.

I know if they choose the cash equivalent it is reported as income, but if they choose the car, is the amount that is reported as income the same amount that they would have recieved as a cash payment if they chose that option?

[DaveO]

It is with Mary Kay and others that I have worked with. It will be reported on the 1099 MISC form at the end of the year.
They still need to track vehicle expense which is used to offset some of the lease income.
You may need to do a calculation of a "Lease Inclusion Amount" that would represent additonal taxable income.

[ATSMAN]

DaveO is correct. I had a client who got the 1099 but did not keep an accurate mileage log because she thought it was not required anymore because it was a "company car" and she thought 100% of miles on that car was deductible!