Mileage vs. Actual Costs

[ConnorandCo]

Good morning. Quick question. I am working on a S Corporation return, where we are using the mileage rather than actual costs. We used the actual costs on the financial statements, but upon review the mileage is a better right off. I know the difference is basically a book to tax difference. My question is there any addition to there basis in the company for the mileage figure. I am thinking not since they are going to expense the mileage figure. So will there basis in the corporation be increased for the un-reimbursed mileage?

[kathyc2]

If the corp owns the vehicle, standard mileage deduction is not available.

If the employee/shareholder owns the vehicle they can be reimbursed at the standard rate, but then there should be no actual expenses showing on books.