DVC use as an employee benefit?

[TammyAlphabet]

I wonder is Greenban needs to hire a college accounting professor? Newly minted?

 

[bjennings]

As a CPA, I hope that people don't use these forums for tax advice or they'll likely become members of the IRS Vacation Club (Room and MEAL PLAN included)

 

[TammyAlphabet]

As a CPA, I hope that people don't use these forums for tax advice or they'll likely become members of the IRS Vacation Club (Room and MEAL PLAN included)

 

[greenban]

I'd think it would be no problem to purchase it. However, I think one would have to use it exclusively for the business and not for "personal use" at all to write off any portion of it. Buying for a small home business or anything akin to that to use essentially for family but write it off to the corporation would be illegal as I understand it. One would also have to adhere to the legal standards of the profession, it's be a big problem in the medical field as well as with many lobbyists.

Dean:

At least in NJ (The most over legislated State):

However, under current IRS guidelines, a rental home, can still be occupied by the owner, for a certain # of days, and still be a legitimate real estate 'business'. Personal use, just like in cars and computers does not preclude business use and expense (at least to a certain degree, which my Accountant knows).

I don't follow the Medical field comment, are you comparing them to Lobbyists, or implying that they as a group abuse small home businesses?

The IRS has clearly defined rules that seperate a hobby from a business, etc.

Looking forward toyour reply.

-Tony

 

[Dean]

However, under current IRS guidelines, a rental home, can still be occupied by the owner, for a certain # of days, and still be a legitimate real estate 'business'. Personal use, just like in cars and computers does not preclude business use and expense (at least to a certain degree, which my Accountant knows).

That I'm well aware of. However, it does not apply to timeshares, the IRS has said so specifically. And it does apply to individual owners writing it off as in investment expense. I'd think that's far different than a business buying under the pretext of a business expense but then having the owners use it routinely for their personal use. It's the write off that would be the problem, not the ownership per se.

I don't follow the Medical field comment, are you comparing them to Lobbyists, or implying that they as a group abuse small home businesses?

LOL, hardly. Only that both groups have a significant amount of regulation of what they can and can't do from a gift standpoint and it would be easy to violate the existing rules and laws with ANY gifts of this nature, no matter how structured.

 

[bjennings]

Also, remember that in a Corporate structure, the corporation is the owner - the personal use regulations do not apply. Any personal use would be included on your W-2, the same as any other corporate employee.

 

[greenban]

That I'm well aware of. However, it does not apply to timeshares, the IRS has said so specifically. And it does apply to individual owners writing it off as in investment expense. I'd think that's far different than a business buying under the pretext of a business expense but then having the owners use it routinely for their personal use. It's the write off that would be the problem, not the ownership per se.

LOL, hardly. Only that both groups have a significant amount of regulation of what they can and can't do from a gift standpoint and it would be easy to violate the existing rules and laws with ANY gifts of this nature, no matter how structured.

Dean, as always thank you for a most edifying response!

-Tony

 

[DisFlan]

However, under current IRS guidelines, a rental home, can still be occupied by the owner, for a certain # of days, and still be a legitimate real estate 'business'. Personal use, just like in cars and computers does not preclude business use and expense (at least to a certain degree, which my Accountant knows)

As I understand it, the IRS says "personal use days" don't apply for a timeshare if the owner is a corporation (it's a specific exclusion, unlike cars etc). YMMV - it might work differently for an S corp in NJ.


DisFlan

 

[byoung]

I'm a very good electrician, anyone who gives employes Disney vacations want to hire me?

 

[Dean]

As I understand it, the IRS says "personal use days" don't apply for a timeshare if the owner is a corporation (it's a specific exclusion, unlike cars etc). YMMV - it might work differently for an S corp in NJ.


DisFlan

Actually the IRS says it doesn't apply to timeshares, period.

 

[DisFlan]

Actually the IRS says it doesn't apply to timeshares, period.

Thanks, Dean. I only read the corp rules, since that's what we were interested in at the time. But the general rule makes sense.


DisFlan