pers. auto used by s-corp

[gman]

How would it be handled If the employee-owner of an s-corp uses his personal auto for the business?

[OldJack]

The simple way is for the S-Corp to reimburse the employee-owner at the standard mileage rate with the employee-owner accounting to the S-corp for the number of miles driven for business. S-corp has a travel expense deduction on 1120S and individual has nothing to report on his 1040 tax return.

Alternate way is for the employee-owner to claim vehicle expense, actual or standard mileage rate, on form 2106 attached to his 1040.

[gman]

Thank you

for the simple solution.