S-Corp Van Asset

[geekgirldany]

Client started business S-Corp in March 2004. He purchased a van to use in the business. It was under the client's name. The business ended in May 2005. Client took the van and traded it in for a truck.

How would you handle this? Would you just not list the van at all on the S-Corp?

Client is in bankruptcy due to the business and states that his other truck (he has two) is about to be taken.

Thank you for any help.

[Snaggletooth]

What name

Geeko, please add a response that tells us whether the truck was actually titled in the owner's name or the corporation.

[geekgirldany]

In Client Name

It was all in the client's name. The Van was in his name and then the truck. Its all in his name not the corporate name. He also made the payments from the corporation and personal funds.

thank you

[JON]

Title in whose name

Never heard the end to this, but S Corp under audit had recorded the autos to the four owners as corporate assets and had all the information for personal use and charged the personal use back on the W-2s. Auditor said unless titled in corporate name was disallowing all auto deductions and recording them as distributions. Auditor said if there was business use to be taken in the prior years the individuals would record that on their own returns. They were not interested in compromise-business miles were there even if standard reimbursement was used as an adjustment. You have reminded me of this point and I will ask the preparer how that turned out.

During the discussion one alternatives mentioned was to have the title assigned to the corporation with the statement that purchases were made in the personal name only to allow for better rates on insurance.

Watch out.

[geekgirldany]

I think I've decided just not to take it as a deduction. I will go ahead and take the gas off. Probably shouldn't even do that. But since the corporation/business closed in just one year I don't really think its worth the chance or would even help him tax wise. I mean say that it was assumed to be in the corporate name take the deduction... then it would just have to be recaptured because he traded it in for a truck for personal use.