Tax Bird Posted July 31, 2009 Report Share Posted July 31, 2009 Does anyone know how ATX handles depreciation recapture? I have a S-Corp vehicle that fell below 50% use this year and it looks like for depreciation ATX is showing the current depr (at the Bus use %) less the recaptured amount. Is this correct? Does anyone have experience with this and could walk me through? I'm so slow! Quote Link to comment Share on other sites More sharing options...
RoyDaleOne Posted August 1, 2009 Report Share Posted August 1, 2009 Tell me how the business use in an S Corporation fell below 50%, please. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted August 1, 2009 Report Share Posted August 1, 2009 It sounds correct, as far as recapture goes, but like Roy, I don't understand how an S corp asset falls bellow the use limit. If the shareholder is using the car for personal use, that's a W-2 addition, for the business. The asset is still 100% business. It's no different than any corp allowing an employee to use a company car personally. You just need to treat it as additional compensation. Quote Link to comment Share on other sites More sharing options...
Tax Bird Posted August 1, 2009 Author Report Share Posted August 1, 2009 It sounds correct, as far as recapture goes, but like Roy, I don't understand how an S corp asset falls bellow the use limit. If the shareholder is using the car for personal use, that's a W-2 addition, for the business. The asset is still 100% business. It's no different than any corp allowing an employee to use a company car personally. You just need to treat it as additional compensation. Crap! Thank you for bringing that to my attention. Any tips on how to figure the taxable value? (I am so screwed!) Quote Link to comment Share on other sites More sharing options...
Lynn EA USTCP in Louisiana Posted August 1, 2009 Report Share Posted August 1, 2009 Crap! Thank you for bringing that to my attention. Any tips on how to figure the taxable value? (I am so screwed!) IRS has a lease value chart - starts with the FMV of the vehicle when purchased - vehicles valued over $50,000 are calculated differently. Determine personal use % x the lease value and add in cents per mile for personal use. Lynn Jacobs, EA Kenner, LA Quote Link to comment Share on other sites More sharing options...
Tax Bird Posted August 2, 2009 Author Report Share Posted August 2, 2009 IRS has a lease value chart - starts with the FMV of the vehicle when purchased - vehicles valued over $50,000 are calculated differently. Determine personal use % x the lease value and add in cents per mile for personal use. Lynn Jacobs, EA Kenner, LA Thank you! Quote Link to comment Share on other sites More sharing options...
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