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r/tax • … • u/Financial_Rice_4807

Annual Lease Value as benefit for S Corp

If salary for an S corp shareholder is $50,000 Annual Lease value for personal use of auto is $10,000 and W-2 Wages are reported as $60,000. What is the compensation deduction? Auto expenses were deducted at business use percentage (over 50%). Is the $10,000 subject to Social Security and employment taxes? Thank you.

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