Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
I bought a car in Nov 2012 and used it for ~50% business use for a partnership I was a member of. The partnership does not reimburse car expenses, so each partner writes off their own car expenses on their personal tax returns.
On 1/1/13, I left the partnership and started a single-member S corp. The S corp does reimburse shareholders' car expenses.
For 2012, I plan to use the actual expenses method to deduct my business car use on my 1040. I know that if I deduct actual car expenses method on my 2012 1040, I cannot deduct the standard mileage rate for subsequent years' 1040.
However, for 2013, is it permissible for me to get reimbursement from the S corp at the standard mileage rate?
- Posts: 71
- Joined: 6 Jul 2008
I am not an accountant, but I was never able to deduct car expenses while having an s corp. Does the s corp own the car? I had considered buying a heavier truck/suv when one could deduct the whole cost in 1 year if it was primarily for business use and had over 6K pounds towing capacity. I chose not to do so, because I basically drove old cars. I don't know if the larger vehicle deduction is still available.
Several years ago my accountant told me the s corp could pay for mileage, but then I would have to add that onto my 1040 as income. It was a wash, so I just stopped keeping track of mileage, and stopped wasting any energy on this issue.
- Posts: 545
- Joined: 23 Mar 2011
My S-corp owned a pickup truck that my biz-partner used to pick up parts which we depreciated - gas/maint was a corporate expense - I expensed my personal mileage at the IRS rate ( $.55/mile ) which was counted as a corp. expense.
- Posts: 1121
- Joined: 27 May 2011
- Location: cruz
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