Car loans
in Banking, Insurance & Loans ·
Regarding lease agreements and taxable fringe benefits, the claim that you just calculate 1% of the lease value is actually incorrect.
There are really two ways this is handled:
1. Using 1% of the original purchase price;
2. Or taking 20% of the monthly lease payment.
The second method applies directly to your monthly installments. So, if you’re paying $350 a month, your taxable income benefit would be $70—assuming that amount includes sales tax.🙂
There are really two ways this is handled:
1. Using 1% of the original purchase price;
2. Or taking 20% of the monthly lease payment.
The second method applies directly to your monthly installments. So, if you’re paying $350 a month, your taxable income benefit would be $70—assuming that amount includes sales tax.🙂