Are there any tax consequences to a company or its employee if a company gifts a vehicle to its employee?

ANSWER

The BIDaWIZ Team's Answer:

You can provide a vehicle as a gift to an employee, but it will likely be taxable as wages. There is a $1,600 tax exclusion if the gift meets the achievement award criteria as defined in IRS publication 15-B. If the employee is considered highly compensated with a salary greater than $115,000, then their could be further limitations to the $1,600 exclusion.