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How about this example: a corporation buys a yacht that the CEO has exclusive use of and lives on. Now the CEO gets full food & board & luxury sea transportatio
by a_c_s 8y ago
How about this example: a corporation buys a yacht that the CEO has exclusive use of and lives on. Now the CEO gets full food & board & luxury sea transportation provided. The CEO's salary is $1.
The CEO is taking untaxed value out of the corporation but paying no income tax. If the corporation pays no taxes either, then the staff of the yacht will be paying more taxes than the CEO & corporation combined!
- aidenn0 8y agoAside from the fact that this is illegal under the current rules (most perquisites are considered income by the IRS), the yacht is an expense, so reduces the taxes the corporation pays under today's rules.