S corp Auto

[S T]

Question, have a single shareholder on a S Corp, that wants to write off a vehicle in 2012

Basic question I asked client, was whether or not the Vehicle was purchased and registered in the S Corp - answer was NO, registered as an individual, all personal funds on purchase.

S Corp open/close in 2012 will only show limited income and expenses produce a loss - so appears to be no tax advantage of "vehicle" on S Corp?

In looking at all factors - appears to be absolutely no advantage to S Corp for this 2012 open/close - all was paid personally even though t/p tried to establish bank account and a S Corp for a write off only!

Good grief! Where do these clients receive their information!

Sandy

[JohnH]

Question...

Good grief! Where do these clients receive their information!

Sandy

From their sales rep at the car dealership?

[Burke]

Question, have a single shareholder on a S Corp, that wants to write off a vehicle in 2012

Basic question I asked client, was whether or not the Vehicle was purchased and registered in the S Corp - answer was NO, registered as an individual, all personal funds on purchase. Sandy

That, in itself, means the SCorp cannot depreciate the auto and take expenses, never mind the fact that it was less than one year. He can deduct whatever legitimate mileage he might have had as a 2106 bus exp on Sche A. Sounds like he may not have any, and I am assuming, no salary paid either.

[JON]

I have never been asked for a title, but

have always been asked for mileage records if audited. The best way and most places will do it is to have it listed in both names. A group of insurance agents years ago used to have you sign a statement that the auto was purchased by the individual to save money on insurance, but operating ownership was being transferred to the operating entity. It was written by an attorney a couple pages long and you would understand it better than what I just explained. They had done that becasue of an audit in an S Corp that one of the current agents had gone through previously.

If you have to come up with mileage you are hurting. If he has the mileage, we require a statement with a signature - never would I take the deduction on a 2106. I would reduce the distributions and take it on the S Corp.

[AZ-Tax]

S-Corp SS uses personal vehicle for S-Corp operating, can S-Corp pay for gas etc.

In reading the threads, if the S-Corp Sole Shareholder uses his personal vehicle (titled in Sole Shareholders name) 77% of the time for S-Corp operating purposes, is the S-Corp allowed to pay 77% of his gas, oil, insurance, repairs etc.? I am not talking reimbursement to sole shareholder but the sole shareholder paying 77% of these vehicles expenses with an S-Corp debit acct card at the gas station, auto repair etc.