Annual lease value constructive dividends

Technical topics regarding tax preparation.
#1
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Can auto annual lease value of personal use be reported as a constructive dividend if it didn't get on the W-2?
 

#2
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Smokeytax wrote:Can auto annual lease value of personal use be reported as a constructive dividend if it didn't get on the W-2?

I’d put it to Other Income, subject to S/E Tax. In fact, that’s what I often do and don’t bother with the W2 reporting.
 

#3
Doug M  
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I agree with Jeff. Constructive dividends are eligible for treatment as qualified dividends. It's wages under the law, not dividends.
 

#4
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Thanks!
 

#5
Nilodop  
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What entity is the employer?
 

#6
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It's a C corporation.

What I was hoping for was essentially to reduce the wage inclusion by the amounts expected to be paid back, recorded as a shareholder loan, and then reclassify the loan as a dividend.

But now I'm thinking the debit to shareholder loan would have to be offset by a credit to auto expense anyway, so I'm not really coming out ahead.
 

#7
Doug M  
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If the shareholder is actually going to pay it back, it does not go on the W-2.
 


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