Technical topics regarding tax preparation.
19-Feb-2019 6:32am
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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?
19-Feb-2019 8:54am
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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.
19-Feb-2019 2:48pm
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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.
19-Feb-2019 5:11pm
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19-Feb-2019 5:24pm
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What entity is the employer?
20-Feb-2019 9:36am
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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.
20-Feb-2019 2:15pm
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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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