Posted by JHyre in Ohio on March 02, 2002 at 06:24:31:
Non-business use by you if the car is owned by the corporation is not moot…such use is taxable income wage income to you, based on what you would have paid to lease the car for the personal use percentage of the lease (e.g.- 20% personal use means you have income to the extent of 20% of a car lease).
John Hyre
Transfer of Assets into Corp - Posted by Rich
Posted by Rich on February 27, 2002 at 19:49:34:
It’s amazing how much education I get from this web-site. Here’s a question… I purchased a car today that I will be using for my real estate business. I purchased it in my name. What is the quickest and least expensive way to transfer ownership of said vehicle to my corporation in exchange for stocks? Will I need to write a resolution to do so? Should I set up a personal property trust and then transfer the benefical interest to the corporation?
Re: Transfer of Assets into Corp - Posted by JHyre in Ohio
Posted by JHyre in Ohio on February 28, 2002 at 06:49:17:
Simply contribute the car/trust interest to the corporation…I assume that you own 80%+ of the corp. A resolution accepting the auto/trust interest for x shares of stock will suffice. Then change the car title to the corporate or trust name. Trust should work fine, assuming that there is no transfer tax on transfer of ownership interest in the trust…there is no such tax in most places. You have presumably done the tax analysis to determine whether having the corporation own the car is superior to mileage reimbursements.
John Hyre
Re: Transfer of Assets into Corp - Posted by Rich
Posted by Rich on February 28, 2002 at 18:52:33:
Thank you for your response. I have weighed the pros and cons of transferring ownership of the vehicle to the corporation. I have a question… If I keep the vehicle in my name, and drive the vehicle for personal use occassionally, wouldn’t I have to prorate the mileage on the car to compensate for the non-business use of it? Conversely, if the vehicle is in the corporation’s name, then the non-business use of it would be a moot point. Is this a correct interpretation of the tax laws?