Dental assistants have something to smile about: Boss gives HHRs as Xmas gifts
Dr. Copenhaver and Dr. Trout, dentists in Richmond Hill, GA, feel blessed to have such a wonderful staff and look forward to doing something special for them each year during the holiday season. This year they gave their employees something more than just a teeth whitening to brighten their smile.
After what seemed to be just another great luncheon at the Ford Plantation in celebration of the holiday season, the nine employees of their dental practice got a little more that they expected after dessert. The employees were always anxious at the party, as the dentists try to "do something big" for them each year; but this is about as big as it gets. Instead of the usual array of cakes and pie, they were served with a tray of keys.
Each set started one of the 9 new Chevy HHR's, adorned with the dental office logo, in the parking lot. They were escorted outside and presented with their new cars for Christmas. Not a bad deal for everyone involved. The employees get a fantastic gift for Christmas and the dentists get to take the write-off for advertising. Everyone comes out a winner.
[Source: WTOC tv via GM Inside News]
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Reader Comments (Page 1 of 1)
DCWF 12:16PM (1/17/2007)
Chevy giveaway at the Ford Plantation. What a great headline!
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gwballin 11:53AM (1/17/2007)
Gift = no taxable income to employees and no tax deduction to employer.
Advertisement = taxable income to the employees in the amount of the value of the HHR and a tax deduction to the employer.
Can't have it both ways, someone will be paying.
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BLS 12:04PM (1/17/2007)
To the employee tax on 15 - 20 thousand = price of brand new car. Or no new car. Or new car for 15 - 20 thousand plus tax. I think it works out.
I would be happy.
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Mr_Oak 1:06PM (1/17/2007)
Chevy giveaway at the Ford Plantation. What a great headline!
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Sharp eye #3, I got a chuckle out of that too.
Don't know about you guys, my dental hygenist is so HOT!! I look forward to getting my teeth cleaned.
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Kowell 1:47PM (1/17/2007)
"To the employee tax on 15 - 20 thousand = price of brand new car"
Easy... Sell your old car and use the money to pay the tax. YOu should even end up with spare change
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BOB 2:35PM (1/17/2007)
GREAT GIFT -- I wonder how they handled the insurance issue. You don't make clear that they gave away cars to own, did not lease the cars.
The person who said a gift is not a tax deduction is wrong -- business gifts are deductible -- and I am not so sure the cars do not count as income.
In any case, the doctors will get sued if the cars are in accidents, because of the ads on them, so they need to be sure they are covered.
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Alex 3:48PM (1/17/2007)
Hey guys, I'm an accountant in NC and you are all wrong - The autos were either given to the employees, or the ownership is retained by the company and the employees are permitted personal use. If they were given to the employees they would be constructive compensation and included in their income, not a deductible business gift. A "deductible business gift" would be a marketing gift given to a customer(also a car would never be considered a "reasonable and necessary" business expense in this regard by the IRS). If they are merely permitted personal use, the government requires that the associated auto use income be included on their W-2s as compensation. Additionally, the IRS has ruled that autos with the advertising covering are not deductible as an advertising expense. Personally I wouldn't be thrilled about having to drive around a rolling billboard.
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gwballin 4:39PM (1/17/2007)
Bob,
Business gifts are only deductible up to $25 and I assume that the HHR costs a little more than $25 so as I said giving a gift of an HHR would not be a deductible business expense.
Alex,
Provided the cars were "gifts", that is to say, property given without expecting to receive something of equal value in return. They would not be taxable to the recipient but gift taxes may need to be paid by the doctors. You are exactly correct about the tax implications if it is not a gift.
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uncle john 4:42PM (1/17/2007)
I hope they don't count this as a fleet purchase
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ChaoZ 4:47PM (1/17/2007)
Good news: they got a free car for Christmas
Bad news: it's a Chevy HHR
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AM 10:09PM (1/17/2007)
I think #10 has it figured out.
Kudos to Chevy. It only took them a few years to come up with something even worse than the PT Cruiser.
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bathtub gin 11:15PM (1/17/2007)
Would it have been better if they had been given Bugeye Sprites? Those cars have the smile built in already.
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Craig N. Cote 6:57PM (1/27/2007)
Chevy HHR! Another vehicle advertised with a brochure featuring "American Revolution" sprawled across the bottom. Since every one is built in MEXICO I hardly see the connection. Another GM LIE! Aveo, built by Daewoo in Korea. GM advertises it as an "American Revolution" Another GM lie! Avalanche, all built in Mexico. GM advertises it as "An American Revolution" Another GM lie. Impala and Monte Carlo, all built in Canada. GM advertises them as "An American Revolution" Another GM lie.
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