Discussion:S Corp - Mileage Expense
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Discussion Forum Index --> Basic Tax Questions --> S Corp - Mileage Expense
Discussion Forum Index --> Tax Questions --> S Corp - Mileage Expense
| 3 April 2008 | |
| First time with a S-Corp client, pest control based out of her home. I can't seem to determine where to include the miles she drives from office(home) to her clients. Since she is not actually commuting would these miles be deducted as 'Travel Expenses' at 48.5 per mile? I can't help but think there is an alternate method besides 'Other Deductions'. Where, if at all, would actual expenses come into play? Both vehicles are owned by the corp, both are trucks. Vehicle 1 has been completely depreciated, Vehicle 2 has one year of depreciation taken. Thank you in advance for everyone's input. | |
| April 3, 2008 | |
| What's wrong with auto expense? Since the corp owns the vehicles, I assume it is paying all of the auto expenses. If the shareholder is using the vehicles for personal use, then the fringe benefit amount should be included in the W2s, but that's another issue. | |
| 3 April 2008 | |
| I don't believe corporations can use the SMR method. Also, you've got issues with both vehicles as the actual expense method has obviously been used up to this point. | |
| 3 April 2008 | |
| I would tend to agree with both of you. Besides, if you think about it, in what situation are you allowed to deduct both mileage AND actual expenses. One thought though; what if the client were to convert one or both vehicles to personal vehicles and then deduct mileage as an Unreimbursed Employee Expense? Thanks again for everyone's help. | |
| April 3, 2008 | |
| LJA, what do you mean, the actual expense method has obviously been used up? I don't know where you're from, but in most places, auto expenses are incurred every time gas is put in the tank.
Wollam, you are not allowed to take both actual and mileage expense deductions on the same vehicle. And why are you thinking of "converting" one or both vehicles to personal use. Granted, depreciation expense is not going to help with the deductions for that one vehicle, but there will probably be more maintenance and repairs expense. I'd leave them as is, unless there's an issue with personal use. | |
| 3 April 2008 | |
| "The actual expense method has obviously been used, up to this point." Small typo can make a great difference. | |
| April 3, 2008 | |
| Oh, yes! Thank you Okie!! That does make a tremendous difference. Sorry LJA. | |
| 4 April 2008 | |
| Thanks again for everyone's input. As I left for my day job this morning it did occur to me that there are no instances where you can deduct both mileage and expenses, why would it apply here? And yes, although this is my first year with her, I don't see any issues with personal use and will agree with Natalie to leave them as is. | |
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