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Question

I am sole owner of S Corp. Car purchased in MY NAME but used in business, can i still claim it as a business asset of the company and do depreciation?

Forum|Forum|6 years ago
March 10, 2020
1 reply
0 views

No text available

You can't let the S-Corporation claim the mileage, as the S-Corporation doesn't own the car.

zaninpsihAuthor

but what about depreciation?

Employee

The S-Corp can't depreciate property it does not own. The car will not be listed anywhere on your 1120-S corporate return at all.

At best, the S-Corp can reimburse you for actual expenses that you can provide receipts to the S-Corp for. But if it's not reimbursed through an accountable plan, that reimbursement gets included in box 1 of your W-2 and is taxable income. It's not deductible at all on your personal tax return.