2 ms·
> Free parking should be reported as income I'm trying to figure out the mental somersaults it has to take for this to seem reasonable to you. The natural sta
by donatj 9y ago
> Free parking should be reported as income
I'm trying to figure out the mental somersaults it has to take for this to seem reasonable to you.
The natural state, empty field, nothing there. I can park there. For Free.
Unnatural state, roads and buildings. My ability to park has been taken. I've had value taken from me. I'm at a negative.
Government / businesses grant the right to park in some places. I'm at less of a negative but still negative of the natural state. I don't see how that's possibly putting me at a positive "income"?
- rayiner 9y agoIf your employer owns a house, and let's you stay in it for free, that's definitely compensation to you. A parking space is no different. The base state is not that you're a allowed to park wherever you want, but rather that it's private property and you're not allowed to park unless someone permits you to.
- donatj 9y agoFalse. When no one lived here, everything was not private property. The mastodons and giant sloths did not claim property rights over the land. That's not the "default" state.
- valuearb 9y agoIf your business is located in an area with free parking available to all, that's not income. If your business is located next to a parking garage that costs $400 a month to park in, and it pays the $400 each month so you can park for free, that's income to you. Imagine your CEO makes $1M a year. But he tires of his high marginal tax rates, so instead negotiates with the board of directors to only take a $500k salary while the company pays a $5,000 a month lease on his $200k car, a $20,000 a month rent on his $2M condo, and $200,000 a year for his parking, premium healthcare, meals, groceries and personal travel expenses. Should he only pay taxes on his $500k in cash compensation now?