helmsworth1

Just curious... I've always wondered if we can expense a car like an AMG as a work car, or even as a car for a superstar salesman (incentives)?

We have about 15 company cars for some of our employees, but most are corolla's and what not.

I have 3 superstar salesmen (each one bringing over $15M CAD/year in revenue) and thought it would be nice to give them an AMG as a bonus company car.

I myself have one booked (stuck at port) but I paid it from my personal accounts.

I will ask our accountant but thought to see if any fellow business owners are having the same thinking here.

bobblehead

You are a very generous boss.

Instead of giving your top sales dogs the car, maybe they feel more useful if you give them a luxury vacation (all expenses paid) for their families or just added onto their annual bonus cheque. Reason being, not all guys like or care about high performance cars at all.

Koru_Kinshi

Personally speaking, I wouldn't trust a salesman who doesn't show what his worth is, including a fast car. But that's the car salesman mentality of me talking.

PaulE550

Back when I was still working for a living, I worked for a company that would give it's top U.S. sales rep for the year a Ferrari to drive as a company car for the quarter. They leased the car from a Ferrari dealership in the area. The idea was to incentivize the other sales reps to step up their game and over-deliver on their quotas. The problem was the first sales rep was 6'5" and could barely fit into the car. Plus he didn't like "performance cars" as they consumed "too much precious fuel". He actually left the Ferrari in his driveway most of the time and drove his Toyota 99 percent of the time on sales calls. Kind of defeated the whole purpose of the motivational program. So since the company wasn't getting either the motivational or expected extra financial value out of offering a high-end car to the top performer (most of the other sales reps never even got to see it after the initial award), the company returned the car to Ferrari after the first year.

Even back then, there were LOTS of very strict IRS rules that had to be followed for the car to qualify as a legitimate business expense. That was in the early 2000's. The IRS rules have become much more restrictive since then with hard caps on the dollar value of the business vehicles. So definitely have your CFO do a deep dive into what the Canadian government has regarding business expenses of high-end vehicles. Also make sure the people you intend to reward with such a car will actually appreciate it.

PeterUbers

I expense my 63S to my company

M5THIS

It looks like I'm getting an E63S Edition ONE as my company car....fingers crossed.

AMGBEASTMODE

I'm in sales and personally write my AMG mileage off and I'm a W-2 Employee, I would look at the difference in giving him a car/lease allowance vs a bonus on a car being taxed the hell out of it. Definitely consult your accountant! BTW, what type of sales and are you hiring, lol?

NickyBlack

Maybe you value an amg as a nice car they may not, or may even have other priorites than a nicer car. Frankly cash rewards is the key. Let them spend it where they most see fit.