ETax847 Posted November 6, 2014 Report Share Posted November 6, 2014 A prospect came into my office saying his previous accountant said he could lease a car through his business (S Corp) and write nearly the entire thing off, even though he would have some personal use with it. Does anyone know of a good source of information on this topic? Thanks Quote Link to comment Share on other sites More sharing options...
michaelmars Posted November 6, 2014 Report Share Posted November 6, 2014 whats the business? Some businesses require the need to take a company car home to respond to calls at night. than might negate the personal usage of the car. Other side trips may be very insignificant. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted November 6, 2014 Report Share Posted November 6, 2014 Would personal use of a company-owned car go on his W-2; therefore, letting the company deduct all between Auto Expense and Wages/Officer Compensation. The officer/employee will have the extra W-2 income and resulting taxes, though. And, I'll bet the insurance will be higher as owned by the company. Still have to track biz vs. personal mileage. Quote Link to comment Share on other sites More sharing options...
SaraEA Posted November 8, 2014 Report Share Posted November 8, 2014 Personal use will go on his W2. I hope the company has an accountable plan or else ALL the use goes on the W2 and the client deducts the business portion on Sch A (subject to 2%). I was at an IRS liaison meeting once where the agent said the only company vehicle that the IRS believes has no personal use is a cement mixer! 1 Quote Link to comment Share on other sites More sharing options...
michaelmars Posted November 10, 2014 Report Share Posted November 10, 2014 hearse, first responder vehicles, anyone on call etc. Quote Link to comment Share on other sites More sharing options...
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