EE-owner car used in S corp

I seem to be confusing myself. Can someone tell me if I’m understanding the rules regarding business use of an employee auto correctly? Employee (the only employee) and 100% owner of an S Corp wants to buy a new car personally and have the business reimburse him for his business use. The car will cost $100,000 and he tells me he uses it 75% for business. Say he drives approximately 18,000 miles per year. What is the most the business can reimburse him tax-free under an accountable plan? Is it 18,000 x .75 . .575 = $7,763? Anything more would be taxable to him? The company can’t reimburse him for 75% of the actual expenses tax free if that ends up being greater than the standard mileage reimbursement?

Thank you.

They can reimburse the mileage tax free. That's it to my knowledge.

What precludes use of actual expenses, subject to 280F limits?

This article summarizes the source of my confusion. I know it's just an article. But it says that if the actual expense reimbursement is more than the IRS standard mileage rate for the year, the excess amount is taxable to the employee.

https://www.thebalancesmb.com/best-way- ... ge-4115568

And then it references page 31 of IRS Pub 463 which says:

https://www.irs.gov/pub/irs-pdf/p463.pdf

"Allowance more than the federal rate.

If your allowance is more than the federal rate, your employer must include the allowance amount up to the federal rate under code L in box 12 of your Form W-2. This amount isn’t taxable. However, the excess allowance will be included in box 1 of your Form W-2. You must report this part of your allowance as if it were wage income. If your actual expenses are less than or equal to the federal rate, you don’t complete Form 2106 or claim any of your expenses on
your return. However, if your actual expenses are more than the federal rate, you can complete Form 2106 and deduct those excess expenses. You must report on Form 2106 your reimbursements up to the federal rate (as shown under code L in
box 12 of your Form W-2) and all your expenses. You should be able to prove these amounts to the IRS."

There's also a Table on page 31 that says if actual expenses are reimbursed, only excess reimbursements not returned would be included in the employee's wages. It only mentions reimbursements up to the federal rate under per diem or allowance reimbursement arrangements.

But my client wants to reimburse himself for actual expenses. Not an allowance. So that seems contrary to what the article is saying. The difference will be huge since we are talking about a very expensive car. There's a point where it must become unreasonable to deduct the actual expenses.

Now I'm basically all confused and in desperate need of some clarification.

Actual, subject to 280F limits, and necessary documentation.

Thank you. Happy Thanksgiving.