Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

If my employer pays my car lease as a part of our deal, is

Customer Question
it treated as compensation for...
If my employer pays my car lease as a part of our deal, is it treated as compensation for company (corporation) whereby they must pay fica other taxes and for me is it treated like compensation where I would owe taxes on the value?
Submitted: 5 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 25 minutes by:
7/2/2012
Tax Professional: USTaxAdvising, CPA replied 5 years ago
USTaxAdvising
Category: Tax
Satisfied Customers: 1,237
Experience: US Taxation specialist.
Verified

USTaxAdvising :

Yes this would generally be considered compensation and subject to employment taxes. (FICA and Medicare)

USTaxAdvising :

The only time it would not be considered part of your compensation is when you would use a company car for business purposes. This would be a "working condition" fringe benefit.

USTaxAdvising :

The fact that the company is paying part of your personal car lease would definitely be considered compensation which would be subject to employment taxes.

USTaxAdvising :

If you used the car for business purposes then you could get your employer to reimburse you for these costs so long as the employer had a written reimbursable plan.

USTaxAdvising :

This reimbursement would not be considered compensation and thus not subject to taxation.

USTaxAdvising :

I hope this helps, please let me know if you have any further questions.

JACUSTOMER-ovmq2v4r- :

Thanks.

USTaxAdvising :

No problem. I see that you have not yet provided a rating. Please let me know if something is not clear or if you need additional clarification.

USTaxAdvising :

Best regards,

Ask Your Own Tax Question
Tax Professional: USTaxAdvising, CPA replied 5 years ago

Hello,

 

Just a friendly follow up. You have not yet accepted or rated my answer so I am wondering if there is something which is not quite clear or understood. Please let me know if you have any further questions.

 

Best regards,

Ask Your Own Tax Question
Ask USTaxAdvising Your Own Question
USTaxAdvising
USTaxAdvising
USTaxAdvising, CPA
Category: Tax
Satisfied Customers: 1,237
1,237 Satisfied Customers
Experience: US Taxation specialist.

USTaxAdvising is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,338 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,980 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
If i have medicare already why am I being charge medicare
if i have medicare already why am I being charge medicare medical insurance on my social security check? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am looking for clarification on taxation of stock option
Hi I am looking for clarification on taxation of stock option sale. … read more
taxmanrog
taxmanrog
Master\u0027s Degree
776 satisfied customers
My question is about taxation of capital gains on equities,
Hello, My question is about taxation of capital gains on equities, like stocks, options, futures of F1 students. Here the facts:1. F1 student for 4 years in the US2. student does not get any income wi… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,083 satisfied customers
If I am donating my services & receive only reimbursement
If I am donating my services & receive only reimbursement for gas mileage are … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a question about taxation on bonuses. Or maybe it's a
Hi, I have a question about taxation on bonuses. Or maybe it's a question about gifts given as an incentive, if there is such a thing. Here's the scenario: I have a contractor working on a demolition … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
This is question for a tax/pension type person. A client had
This is question for a tax/pension type person. A client had her sister working for her with a verbal agreement to take care of her during retirement, kind of an unofficial pension plan. in 2015 the c… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Assuming a Medicare tax rate of 1.45% and monthly gross
Assuming a Medicare tax rate of 1.45% and monthly gross wages of $2,500, the amount recorded in Medicare Tax Payable for one quarter for the employee's payroll deduction is… read more
taxmanrog
taxmanrog
Master\u0027s Degree
776 satisfied customers
I had a question about taxation of a Veteran's Benefit
Good afternoon, I had a question about taxation of a Veteran's Benefit situation. … read more
abci168
abci168
Principal
27 satisfied customers
Q2" In context to Taxation, what will be the tax implication
quot;For Socrateaser only Q2"In context to Taxation, what will be the tax implication if I start a new S-Corp in Texas in the month of December rather than starting in January? Assuming that there wil… read more
socrateaser
socrateaser
1,031 satisfied customers
Back to the tuition reimbursent question. Can you send me a
Back to the tuition reimbursent question. Can you send me a link to the IRS website or some other tax authority that would defend the stance that tuition reimbursement to the family from the district … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Lost my medicare card, how to replace? Need new medicare
no, just want to replace my lost card. tell me how!?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,804 satisfied customers
US taxation and sales tax issueI started ebay business with
Second opinion] US taxation and sales tax issueI started ebay business with a Korean relative. We don't have a partnership agreement. The partner has an paypal and ebay account, gets a sales order, an… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
US taxation and sales tax issue I started ebay business with
US taxation and sales tax issueI started ebay business with a Korean relative. We don't have a partnership agreement. The partner has an paypal and ebay account, gets a sales order, and let me dropshi… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,804 satisfied customers
Question regarding taxation of partnership distributions and
Hi, question regarding taxation of partnership distributions and capital gains … read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,338 satisfied customers
I have a personal Tax question. Next month Medicare will be
I have a personal Tax question. Next month Medicare will be my health insurance provider as I turn 65 in September. Am current on my present health care premiums with the exception of August premium. … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Company offers $40/month reimbursement for personal cell
Company offers $40/month reimbursement for personal cell phone use after presentation of invoice. Is this taxable? Please quote IRC or other relevant source detail.… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,282 satisfied customers
Trying Again - New York based C Corp - Fringe Benefit for 5%
Trying Again - New York based C Corp - Fringe Benefit for 5% ownersBackground:BestWeb tracks the use of all company vehicles and whether the mileage is for business or personal use. The business use m… read more
Matthew Breecher
Matthew Breecher
President
MBA (Graduate Legal Studies)
286 satisfied customers
Fringe benefits - A small business owner has 3 employees.
fringe benefits -Hello,A small business owner has 3 employees. Will a gym membership ($ 20 per month) be consider a de minimis fringe benefit for those employees? or will it have to be added to their … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
513 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x