Question

Schedule C Auto vs Actual

Forum|Forum|5 years ago
July 12, 2020
1 reply
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In a previous business in 2005 I claimed my auto on schedule C and use the actual expense deduction. Fast forward to 2020, I am using that same vehicle but in a different business. I would like to claim the actual mileage since it will be more than the actual expenses. Is this possible? Or do I have to stick with the actual expense deduction?

I thought of a possible workaround: Could the C-Corp buy the vehicle from me and therefore the date placed in service would be this year for the C-Corp and then claim the mileage deduction. Is this possible?

if so, how would I go about the sale since it is in my name? Any other ideas?

A

AmeliesUncle

No, you are stuck with the actual expenses.

No, a corporation can only claim actual expenses. It is not allowed to use the Standard Mileage Rate.

If you have a corporation, you REALLY should be consulting with a tax professional. Corporate taxes are not really a do-it-yourself kind of thing, unless you enjoy audits and paying extra taxes and penalties.

C

CindyABAuthor

My error in stating a C-Corp. I meant to say Sch-C. This is a sole proprietor business. Any workaround to the vehicle ownership issue? What if I sold yo a family member and bought it back? Can I claim mileage then?