USA Personal car payment paid from the business

[accountant1118]

The business is a C corp and the car payment of one of the corporate officers is being paid by the business. How should I record the car payment on the corporate books? The car loan is under the name of the corporate officer

 

[UncleSam]

The right way to do it is to either include it as a fringe benefit on the W-2 or to label it as a dividend payout and then report on the schedule B. Either way though it will be taxable to the owner.

Obviously this would be simpler if he was an S Corp then it could just be labeled as a distribution.