Discussion:Standard Mileage Rate Method

1. Standard mileage rate is not available to S-corps when the s-corporation purchases the vehicle.

2. Standard mileage rate is available to partnerships (assuming no more than 5 vehicles, standard mileage method elected 1st year auto put into business use).

3. Assume vehicle is owned by invididual 100% owner of S-corp, but it is used for personal and business use. Does this make any difference with regards to being able to use the standard mileage rate? I read some other posts, and it appears that an accountable plan would need to be set up and the s-corp could reimburse the owner at the standard mileage rates. However, I want to confirm that this is the only way the standard mileage rate can be used within an S-corp.

.06 Limitations. (1) The business standard mileage rate may not be used to compute the deductible expenses of (a) automobiles used for hire, such as taxicabs, or (b) two or more automobiles used simultaneously (such as in fleet operations).

So the answer to number two is no.