S-corp owning my car?

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scotsman
Posts: 28
Joined: Fri Apr 01, 2016 9:17 am

S-corp owning my car?

Post by scotsman »

Hi,

I have a personal car that I use 80% for business. It is an old car with relatively high maintenance costs.

Question is should I pass it’s ownership to the s-corp or keep it in my own name? I am having trouble figuring out the pros and cons. Also looking to minimise my accounting burden.

Thanks!
sixty40
Posts: 288
Joined: Sat Dec 06, 2014 11:53 am

Re: S-corp owning my car?

Post by sixty40 »

Our small consulting firm used to have our cars (used for both personal and business) as part of the s-corp, it became more beneficial and simpler for us to just get reimbursed for business mileage (about $0.55/mile), so we eliminated all company cars. The reimbursement for mileage has more than paid for all of my auto expenses including gas, maintenance, insurance, etc. I have a very low hybrid maintenance. It may be different if your vehicle is high maintenance, but $0.55/mile is a very good reimbursement.
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