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February 24, 2024
Question

2 LLCs share company car owned by one of them

  • February 24, 2024
  • 1 reply
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I own 2 LLC's.  LLC #1 owns a company car that is used in the business.  LLC #2 uses the same company car owned by LLC#1.  Can LLC #1 claim LLC#2's business use of this vehicle for tax purposes, if LLC#2 pays LLC#1 a fee for use of the vehicle?

1 reply

PatriciaV
Employee
February 25, 2024

If LLC #2 pays a fee for the use of the business vehicle, LLC #1 must report this as income. The total mileage/expenses for the vehicle for the year (both companies) would be reported on LLC #1.

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