Can S-Corp reimburse shareholder for auto expenses?

[rock]

S-Corp shareholder/employee wants to know how to be reimbursed by S corp for his auto expenses. The car is in his name.
He is sole shareholder.
thanks

[taxea]

does the SCorp have rules/regs/policy that allows for this? Perhaps the employee could take the expenses on his 1040 Sch A F2106?

[buzzardbreath]

Take the Expense

Rock, take the expense in full as an ordinary operating expense.

Sounds simple, but his corporation has to have an "accountable plan." Must turn in an expense report with miles disclosed, and corporation must reimburse the shareholder. This does not result in any reportable income for the shareholder, so long as the rules for accountable plan are followed.

Mileage expense is reimbursed to the shareholder at the standard mileage rate. If he wants to deduct "actual" advise him of the horrible accounting records he will have to keep. Usually dangerous and not worth his time (or yours either).

[Burke]

My SCorp clients do exactly this and they have it documented in a resolution filed with the Corp records. Voted on in a meeting.