best car payment plan with corp. employee

[jmc]

A corporation officer/shareholder own an automobile used mostly for business purposes. The corporation pays 100% of car payments directly to a financial institution. Also it records personal portion of payments as ‘Loan to Shareholder’ which he pays it back to corporation regularly. In this situation, is the loan still regarded fringe benefit and wage to an employee?
Instead, if the corporation reimburse the business expense portion to an employee, does it make a difference? Same results if the car is owned by the corporation?

What is the most desirable way to set up car payment plan between them.
Thank you.

[Bird Legs]

car payment

Because the car title and the car note are in the individuals name, there should be an
accountable plan where the corp. reimburses the car owner for the business use of car.
This is deductible to the corp. but is not income to the car owner.
The car owner would then make the payments personally.
The way it is being done now is that the car owner may have income.