[Subscribe to Daily Digest] |
[Main General Bulletin Board | BBFAQ |
Prev by Date | Next by Date | Post Followup ]
Member Login / Signup - Members see fewer ads. - Latest Member Gallery Photos
Re: OT: Looking for help evaluating a compensation package Posted by Rod [Email] (#3128) [Profile/Gallery] (more from Rod) on Fri, 18 Jan 2008 07:08:56 In Reply to: OT: Looking for help evaluating a compensation package, MI-Roger [Profile/Gallery] , Thu, 17 Jan 2008 11:25:10 Members do not see ads below this line. - Help Keep This Site Online - Signup |
There are no real hidden tax issues with a company car. The IRS taxes you on the lease value of the car (they have tables you can use, that tells you the equivalent lease value based on the original price of the car). You multiply this value by your percentage of personal use of the car to get the taxable benefit amount. So, a $25,000 car has an annual lease value fo $6,850 per the IRS tables. If you have 25% personal use then the annual taxable benefit is $6,850 x 25%, or about $1,712.
Company paid gas is a great deal tax wise. The IRS only taxes this at 5.5 cents per personal mile driven. If you get 25 mpg then you are being taxed at less than $1.50 per gallon of gas. For some reason they never update this figure.
One question - are you happy with a company car, or would you rather take some extra money and drive a Saab? If the latter, you could always negotiate for extra salary in lieu of the car.
No Site Registration is Required to Post - Site Membership is optional (Member Features List), but helps to keep the site online
for all Saabers. If the site helps you, please consider helping the site by becoming a member.