D2018
Level 2
It does/can effect reasonable compensation. Reimbursement via an accountable plan is an expense to the company, thus reduces income, which in turn possibly decreases salary paid (compensation).

You keep stating that because a truck is present it will be used for all things.

"if I bought a Truck to use for the LLC because I need a Truck to do what I need to do, why would I park it and not use it for other things when I need a Truck to do what I need to do for the other things?

Answer: you would not use it for other things because you are not supposed to! It is a business vehicle to be used only for that business. you have other vehicles to use for the other things you need to do.

Just because it can be used doesn't mean it is. Your basically saying no sole owner or owners of a business can possibly say their "business" vehicle is used 100% for business, that doesn't make sense. If a owner has other means of transportation (personal vehicle) and a business vehicle for business, only used for business, then 100% is allocated to business use. This is documented on tax forms. If a vehicle is classified as 100%, client must not use it for anything personal, if so, your absolutely correct! it is to be documented and reported as a benefit and included in wages.

Do you know of any applicable tax law that i'm missing stating that a vehicle cannot be taken at 100% use because the possibility it can be used for personal reasons? or where this scenario is outlined. If so, please advise.

In summation: Your point is the vehicle cannot be 100% because it may be used for other purposes.

I greatly appreciation this discussion, it has definitely made me think and reevaluate the circumstance.





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