Fedex Courier-Standard Mileage Rate

[stalker001]

I have an S-corporation client who delivers packages for Fedex. The former accountant used the standard mileage rate to calculate auto and truck expenses on the S-corporation tax return. Does anyone see any issue with the approach? What will be the entry if there is no issue with this?
Thank you!

[S T]

See TTB 10-5

I don't think Corps can use Standard Mileage Rate

Did You Know? The standard mileage rate method cannot be used by
corporations. Only self-employed individuals (including partners in a
partnership) and employees may use the standard mileage rate method.
Rev. Proc. 64-10)

Sandy

[stalker001]

Thank you.

[kpangelinan]

I have an S-corporation client who delivers packages for Fedex. The former accountant used the standard mileage rate to calculate auto and truck expenses on the S-corporation tax return. Does anyone see any issue with the approach? What will be the entry if there is no issue with this?
Thank you!

That is correct....no mileage deduction for corps, but the corp can reimburse the driver for mileage and deduct that or even lease the vehicle.....problem with leasing is the owner will need to include the lease payments as rental income (no SE tax though)....you'll need to do the math to see what works out better.

[Davc]

The big question is this. Who owns the truck?