Question - "Employee Business Expenses" Please respond to the following:
- As part of his contract at his new job, Jim is provided a company car and gas card to go back and forth to work. He uses the car for out-of-town travel approximately once a month. Jim also uses the car and the gas card for his family vacations, dinner, etc.
- Explain the applicable tax law regarding employee compensation and the criteria for deducting expenses. Make at least two recommendations for ways that Jim can ensure compliance with the tax law.