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convey truck to S corporation

Technical topics regarding tax preparation.
#1
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89
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5-Jan-2015 4:01pm
Location:
Seattle
my client has three equal partners. Each partner uses a truck, one truck is owned by a partner's dad and uses the truck for the business, another partner uses a company owned truck, and the third partner uses his truck which he paid for and has an installment note payable each month.

The partner with the installment note wants to sell the truck to the s corporation and have the s corp payout his equity and take over the installment note.

I am trying to figure out the best way to do this, a way that is fair to the other partners, a way that does not create income to the partner conveying the truck?
 

#2
JR1  
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Location:
Western 'burbs of Chicago
Trucks are always the problem!!
Never a 'fair' way other than to reimburse mileage....
Go Blackhawks! Go Pack Go!
Remembering our son, Ben Jan 22, 1992 to Aug 26, 2011.
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#3
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2030
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21-Apr-2014 10:39am
Location:
Los Angeles, California
IMHO unless the vehicle is 100% business use, I prefer the shareholder to own the vehicle and S-corp to reimburse under an accountable plan.

Mucking about with adding the vehicle fringe to the W-2 is just too much of a pain.
 


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