Can a corporation take mileage deduction on vehicles?

[kpangelinan]

Does a C-corp and an S-corp have to take depreciation only on vehicles? Can they take mileage?

[Anarchrist]

As long as they don't have a fleet (5 or more vehicles) they can use standard mileage rate.

[KBTS]

Page 10-5 in TTB says:

The standard mileage 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).

[Roland Slugg]

KTBS is correct. The SMR is only available to individuals, not corporations. Anarchrist's reply is correct in the reference to 5 or more vehicles used simultaneously ... i.e. a fleet of some kind. Fleets of 5 or more vehicles must use actual expenses plus depreciation.

[David1980]

I am curious how that works with a partnership return. Obviously it says plainly that the partners of a partnership can use standard miles. However, can the partnership itself use standard miles or is it forced to actual if it takes the expense?

[oceanlovin'ea]

Reimbursement

An s corporation can make the decision to reimburse a shareholder/owner for the business use of their vehicle. But it must be recorded in the board minutes and be an accountable plan.

Linda F

[JCH]

I am curious how that works with a partnership return. Obviously it says plainly that the partners of a partnership can use standard miles. However, can the partnership itself use standard miles or is it forced to actual if it takes the expense?

I'm curious to know how this works on a Partnership return, too. Anyone out there who can answer this?

[Davc]

Use of SMR is limited to individuals.



From Rev Proc 64-10:

2. The use of the simplified method is limited to a self- employed individual or an employee who operates one automobile for business purposes. Where a person alternates in using different automobiles on different occasions for business purposes, the standard mileage rate applies to the total business mileage of such automobiles, as if they were one, to arrive at a deduction. Similarly, if an individual replaces his automobile during the year, the total business mileage for the year of both automobiles must be used, as if they were one, in applying the standard mileage rate.

[ChEAr$]

I don't really know

I'm curious to know how this works on a Partnership return, too. Anyone out there who can answer this?

except..... I've never seen a partnership which owned a vehicle. Anyone else?

A car dealer is very reluctant to sell vehicles to anything but individuals or corporations.
And never had an LLC which had bought a vehicle either.

[Anarchrist]

KTBS is correct. The SMR is only available to individuals, not corporations. Anarchrist's reply is correct in the reference to 5 or more vehicles used simultaneously ...

Thanks for the correction. I use to know that at one point in my life.