Auto expense for S corporation

[Dan5]

Taxpayer is 100% owner of S corp. As an employee, he was using his private car 100% in the business of corporation for three years. FMV value currently is $10,000. Under accountable reimbursement plan he was reimbursed by corporation using standard IRS mileage rate for all these years.
This car is using a lot of gas and needs a lot of maintenance, so actual expense would be higher that using standard mileage rate. He wants to transfer/ sell to corporation this car.

,Here are my questions.
1. How should he handle transfer car to a corporation and what results are for him and corporation? ( use section 351?)
2. What will be the basis of this car after transfer and how can it be depreciated?

[veritas]

If he transfers it in

It will come in at FMV or his basis whichever is lower.

You have been depreciationg the vehicle using the standard mileage allowance so compute the basis.

If you sell it to the corporation at a gain you will have taxable income. If you sell it to the corporation at a loss you don't get to recognize it.

[Dan5]

Auto in corporation

1. When corporation owns the car can it use the standard mileage rate method?
2. Instead of selling car from shareholder to the corporation can it be transfer for stock? What is more advantageous ?
3. Regarding basis. This car for privately owned by the employee and he was reimbursed for travel using accountable plan? I wonder if in that case value of car before transfer is FMV as this is still employee car not a corporation. ( Employee submits mileage and purpose of travel, but he could use different cars or rental)