I found the info in an old thread is regards to vehicle lease to s-corp. (don't know if RML is still around):
The way we handle it in our firm is to:
1-Be sure we advise the s-corp to have a written auto lease in place spelling out exactly what the corp is to pay for (a set lease payment per month, which usually ties to the car payment, insurance, fuel, maintenance, etc)
2- Corporate minutes to approve the lease
3 - have the monthly lease payments paid to the shareholder rather than the finance company directly
4 - The s-corp issues a 1099-MISC to the shareholder showing the monthly lease payments in box 1-rent
5- Include the monthly payments in the shareholder's individual F-1040
This usually discourages them from continuing the practice of paying personal car payments out of the s-corp.
RML
So far so good. Income from rental is reported on 1040, probably Sch. C. Here is my question: If S-corp pays for everything then on 1040 depreciation and interest (if loan) are taken?
I think it would be much better to reimburse mileage or actual expenses.
What if the scenario includes several vehicles owned by 2% shareholder but some of them are used by other employees? I think then the only way would be a lease agreement, right?
The way we handle it in our firm is to:
1-Be sure we advise the s-corp to have a written auto lease in place spelling out exactly what the corp is to pay for (a set lease payment per month, which usually ties to the car payment, insurance, fuel, maintenance, etc)
2- Corporate minutes to approve the lease
3 - have the monthly lease payments paid to the shareholder rather than the finance company directly
4 - The s-corp issues a 1099-MISC to the shareholder showing the monthly lease payments in box 1-rent
5- Include the monthly payments in the shareholder's individual F-1040
This usually discourages them from continuing the practice of paying personal car payments out of the s-corp.
RML
So far so good. Income from rental is reported on 1040, probably Sch. C. Here is my question: If S-corp pays for everything then on 1040 depreciation and interest (if loan) are taken?
I think it would be much better to reimburse mileage or actual expenses.
What if the scenario includes several vehicles owned by 2% shareholder but some of them are used by other employees? I think then the only way would be a lease agreement, right?