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For a few months in 2014, I was working with an early stage start up and they weren't able to compensate me in any way except the promise of equity when we started.

A month in to my tenure with them, they liked my work and wanted to give me an incentive to continue helping them out. They had a second car they were looking to sell and instead decided to "give" it to me.

At the time of transferring the ownership of the car, I paid the sales tax on it. However, as my next piece of compensation, the start up also reimbursed me for sales tax I paid on the car.

A couple months later, I parted ways with the start up due to differences in strategy.

Now that it is tax filing season, I am wondering as to whether any of the above has tax implications?

Edit: I haven't been issued a T4 by the company and I am not expecting one at this point.

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  • Did you receive documentation of the car as part of your compensation? For instance, was it reported as income on your W2 from the company?
    – BrenBarn
    Feb 21, 2015 at 17:48
  • I have edited my question
    – karancan
    Feb 21, 2015 at 18:08

1 Answer 1

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You need the opinion of a qualified accountant, but probably you need to count the fair market value of the car as earned income.

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    I think "pay" is not the right word there. Perhaps "count" or "consider" is what you mean?
    – BrenBarn
    Feb 22, 2015 at 8:58
  • Yes, count. Count is it Feb 23, 2015 at 15:00

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