2019 Personal Use of a Company Automobile
According to IRS regulations, the personal usage of company cars by employees must be treated as taxable compensation income (and is subject to normal payroll taxes). In valuing this compensation, the general rule is the employee’s income is equal to what it would cost in a regular transaction to lease a comparable vehicle for the time used for personal purposes.
CLIENTS: If you would like for us to prepare this calculation for the dates January 1, 2019 through December 31, 2019, please sign this letter and fill out the attached form for each employee who had personal use of an automobile owned by the business.
Fax the completed forms to the attention of Judson Motes at (205) 545-5225 or by e-mail to email@example.com. In order for the calculations to be timely completed, all information must be returned no later than Wednesday, December 18, 2019.
If you are not currently a BMSS client, but would like help in this area, please reach out to us today at 1(833) CPA-BMSS.