Q: can my company make payments on personal loan of mine instead of paying me a higher salary?
my company made loan payments for me instead of paying me a higher salary....now they want me to pay taxes on this money? is that legal
A: If your company pays your personal loan directly it must be reported as additional income to you and an expense to the company. If you own the company, you should check with your accountant to see if there are any actual tax savings.
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