Discussion:S-Corp Vehicle Expenses
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Advanced Tax Questions --> S-Corp Vehicle Expenses
Discussion Forum Index --> Tax Questions --> S-Corp Vehicle Expenses
DarstandDeLaney (talk|edits) said: | 22 July 2008 |
| Have a client that is the sole owner of an S-corp. The S-corp leases a vehicle for about $5,900 per year. It is used approximately 50/50 for business and personal use. The personal use amount is included on the TP's W2 as taxable income for SS. I am wondering how to handle the expenses on the S-corp side, however. Should I show 50% vehicle expense as the other 50% will be picked up in office compensation? Not sure why this isn't clicking with me!!! | |
Michaelstar (talk|edits) said: | 22 July 2008 |
| 100% of the expenses for the vehicle are on the corporate side and taken as such. The offset to the PUCC (personal use of company car) which is shown as compensation (which is a debit to officer salary) is a credit to other income. Some also credit the vehicle expense account but I like to keep things clean and have an audit trail so I credit other income and report it on the F/S and T/R as "personal auto use reimbursement". | |
To join in on this discussion, you must first
log in.
