Personal Vehicle

How would you treat a used passenger vehicle with a s-corp but its under their personal name? 75% business usage

From what I read the S-corp can reimburse bonus & regular depreciation but unsure where to put this expense on the 1120S

Your S corporation calculates deductions differently depending on who owns the vehicle. That means you have a chance to run the numbers in advance and discover which form of ownership will maximize your deductions.



For example, let’s say you use your vehicle 60 percent for business purposes.



·
Title in your name. You submit an expense report that substantiates your 60 percent business use, and the corporation reimburses you for 60 percent of your operating expenses and depreciation.1

·
Title in corporate name. The corporation deducts 100 percent of actual expenses and either creates compensation to you or has you reimburse a value equal to 40 percent of the lease value of the vehicle. (We’ll explain how this corporate deduction works in more detail later in the article.)

I would reimburse the business use using the standard mileage rate.

I would reimburse the business use using the standard mileage rate.

So you wouldn't go the route with depreciation reimbursement?

For simplicity, I would not. Also, I am not sure how you would actually report it if reimbursing depreciation. LOL! Maybe someone else can assist with that if you really want to handle it that way.

Business mileage reimbursement might be the way to go if the vehicle gets decent gas mileage, and has/is expected to have low maintenance expenses. If the vehicle is a (as Example:) old Chevy suburban that gets 7mpg, and breaks down a lot (as Chevy's do (lol)) then mileage would obviously not be the way to go.

Another thing you might want to think about is if the vehicle needs to have business vehicle insurance coverage on it if it is used in that line of work.