>It's not tax-deductible if someone pays directly It would be an expense and would ergo be 100% tax-deductible (e.g. a reduction on $5000 of taxable income). T

>It's not tax-deductible if someone pays directly It would be an expense and would ergo be 100% tax-deductible (e.g. a reduction on $5000 of taxable income). There is another aspect relating to whether the firm gained an asset but that applies to both scenarios. This makes no sense as a tax scheme.