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Megan C
Megan C , Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16539
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I am a corporate officer for our small business corporation.

Customer Question

I am a corporate officer for our small business corporation. I would like to buy the car I have been driving, owned by our corporation. What are the steps to do so?
Submitted: 2 years ago.
Category: Finance
Expert:  Megan C replied 2 years ago.

Megan C :

Thank you for your question, and thanks for using JustAnswer.com

Megan C :

Basically, all you need to do is come up with a sales price and a sales contract, then pay your company for the vehicle

Megan C :

Basically, what you need to do is determine a fair price. This needs to be an arms length transaction, so fair price would be what a buyer and a seller in the normal market place would be willing to pay for the vehicle

Megan C :

You could look to Kelly Blue Book for private resale values.

Megan C :

Then, you will pay that amount to your corporation, either through cash or through getting a loan from a financial institution.

Megan C :

You will prepare the sales documents and transfer the title.

Megan C :

The corporation will have to pay tax on the gain from the sale.

Megan C :

If the car is transferred below market prices, it could be determined to be a dividend to the taxpayer, and the taxpayer will need to pay the applicable tax on the dividend.

Megan C :

Do you have any questions about this matter?

Customer:

entry into corporate minutes, also?

Megan C and other Finance Specialists are ready to help you
Expert:  Megan C replied 2 years ago.
Thank you for your follow up. Yes, you will need to approve the sale in your company minutes as well. Thanks again for using our service and have a great day!