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Company benefits are also a form of salary. If your company gifts you a free car, they have to tax it as such.
by n2d4 3y ago
Company benefits are also a form of salary. If your company gifts you a free car, they have to tax it as such.
- krupan 3y agoYou'd think so, right? Look up why corporations started providing insurance to their employees. Look into why your compensation is not just a salary, but salary, bonuses, stock (options or RSU's), etc.
- wmf 3y agoAFAIK health insurance is special-cased by law. I had to pay (a trivial amount of) tax on imputed income from IBM's life insurance. The IRS is wise to a lot of perks like company cars.
- n2d4 3y agoAs others have mentioned, health insurance is special and may or may not be taxed. Bonuses and stock however are taxable.
- sudhirj 3y agoIt isn't usually classified as a gift, it's company property that you use exclusively. So on the books it's a depreciating asset for the company.
- jjav 3y ago> Company benefits are also a form of salary. If your company gifts you a free car, they have to tax it as such. The company doesn't gift them a car. The company buys a car held in the name of the company and lets the person use it.
- giaour 3y agoIf used for personal purposes, that car at your disposal would still be a taxable benefit.