Corps, S-Corps and Mileage Rate

[cbarstow]

It is my understanding that Corporations and Sub-S Corporation do not qualify to use the Standard Mileage Rate for their company vehicles EVEN if they only have 4 or less vehicles.
However a colleage disagrees.

Any discussion would be helpful.
Thanks in Advance

[Luis Mopeo]

It is my understanding that Corporations and Sub-S Corporation do not qualify to use the Standard Mileage Rate for their company vehicles EVEN if they only have 4 or less vehicles.
However a colleage disagrees.

Any discussion would be helpful.
Thanks in Advance

TTB, page 10-5, "Did You Know?"

"The standard mileage rate method cannot be used by corporations. Only self-employed individuals (including partners in a partnership) and employees may use the standard mileage method. (Rev. Proc. 64-10)."

[Jiggers]

Standard Mileage Rate use by 1120/1120S

It is my understanding that Corporations and Sub-S Corporation do not qualify to use the Standard Mileage Rate for their company vehicles EVEN if they only have 4 or less vehicles.
However a colleage disagrees.

Any discussion would be helpful.
Thanks in Advance

If you debit mileage expense, what do you credit?

You can set up an accountable plan whereby you reimburse an employee for business use of their personal vehicles at the IRS standard mileage rate. These employees can be shareholders also.

They key is that the corporation does not own the vehicle.

If the corporation owns the vehicle, then you can't use the mileage rate.

[cbarstow]

THANKS for the information

Thanks for the information Luis and Jiggers !! I appreciate your responding to my question!
Cbarstow