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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16544
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.

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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?

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
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!