{"id":5197,"date":"2023-02-16T10:00:19","date_gmt":"2023-02-16T18:00:19","guid":{"rendered":"https:\/\/berkonomics.com\/?p=5197"},"modified":"2023-02-02T16:54:23","modified_gmt":"2023-02-03T00:54:23","slug":"about-personal-use-of-corporate-assets-2","status":"publish","type":"post","link":"https:\/\/berkonomics.com\/?p=5197","title":{"rendered":"About personal use of corporate assets"},"content":{"rendered":"

Here\u2019s the IRS take on the issue:<\/strong><\/p>\n

It is no secret that the IRS carefully looks below the surface for personal use of company\"\" assets (including cash) in its corporate income tax audits.\u00a0 This insight addresses more the impact of such behavior upon the actions of employees and others who observe that behavior from a senior manager or owner of a business \u2013 and know that they cannot say anything about it without jeopardizing their jobs.<\/p>\n

Is this just an earned perk?<\/strong><\/p>\n

Use of a corporation as a personal piggy bank seems to be an earned perk in the mind of some entrepreneurs and some CEOs, reasoning that the only harm in doing so is in taxes never paid to the IRS.\u00a0 The truth is that there is a much deeper degree of damage done to the moral and ethical fiber of the company itself, and certainly to the credibility of the executive or entrepreneur with employees.<\/p>\n

Addressing company culture with negative actions<\/strong><\/p>\n

[Email readers, continue here…]\u00a0 \u00a0<\/em><\/span> \u00a0The culture of a company is created from the sum of many parts, most all coming from the top.\u00a0 One of the most toxic shocks to good culture comes when a promise of ethical decency and mutually fair behavior is breached by a senior manager, observed by others.\u00a0\u00a0 Think of the effect of locking the supply cabinet only to take from it whatever the person controlling the security of the cabinet wishes for personal use.\u00a0 Or of the reaction of your accounting person when asked to book obvious personal uses of the corporate credit card as company expense.\u00a0 Or flaunting the privilege of that corporate card by charging expensive meals with high priced wines when not entertaining outside guests.<\/p>\n

The most damaging effect of all\u2026<\/strong><\/p>\n

\"\"<\/p>\n

And there is another degree of damage to measure in more extreme cases \u2013 the robbing of the entity\u2019s ability to finance its own growth, sometimes causing reliance upon bank loans or other sources of capital.<\/p>\n

Those in charge, even if one hundred percent owners of the business, have a special obligation to be open, lawful, and ethical in the use of those assets upon which others depend for their continued jobs and living wage.<\/p>\n","protected":false},"excerpt":{"rendered":"

Here\u2019s the IRS take on the issue: It is no secret that the IRS carefully looks below the surface for personal use of company assets (including cash) in its corporate income tax audits.\u00a0 This insight addresses more the impact of … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[1,9,20,10],"tags":[],"class_list":["post-5197","post","type-post","status-publish","format-standard","hentry","category-general","category-hedging-against-downturns","category-protecting-the-business","category-surrounding-yourself-with-talent"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/berkonomics.com\/index.php?rest_route=\/wp\/v2\/posts\/5197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/berkonomics.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/berkonomics.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/berkonomics.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/berkonomics.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5197"}],"version-history":[{"count":0,"href":"https:\/\/berkonomics.com\/index.php?rest_route=\/wp\/v2\/posts\/5197\/revisions"}],"wp:attachment":[{"href":"https:\/\/berkonomics.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/berkonomics.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/berkonomics.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}