Even after over a decade of being trendy, having a company-supplied cell phone is still a status symbol. But that little gadget may have more implications than just status... if you're the employer, that is.
A little known regulation passed in 1989 holds that company-provided cell phones should be treated like company cars and other executive perks: Personal use qualifies as extra compensation and thus must be taxed.
So, how is something like this tracked? Basically, it's left up to you and/or your employee to go through your cell phone statements and mark off business and personal calls. Sound like a pain in the butt? Well, it is. And not doing it is an even bigger pain in the butt--in the form of full taxation TO YOU on all calls, personal and business.
Although this regulation is outdated and a change seems to be likely, the law is still in effect until then. And despite its lunacy, the good ol' IRS can legally tax you on it.
So, now you know...
Read the full L.A. Times article.
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Courtoons THE BOOK is here!
3 years ago
1 comment:
Wow--I had no idea they counted this as a form of income. It's both surprising and yet not at all surprising...
This would be a great article topic as well to examine in greater detail at some point, but it'd need to be tied to something. Ideas forthcoming.. :-)
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