Before we tackle this hairy dog, let me ask this. Since
you only mentioned that you are a shareholder, what can you
say about having been an employee? AFter all, if you are
also an officer, and I must presume you are, then you are
also an employee, and as such , should be getting a salary.

You DO have A W-2 form, don't you?

Okay, so if you do have the W-2 showing reasonable wages,
then you will have a case for that form 2106 deduction
IF......IF.... the corporation has so authorized you in
advance to purchase said vehicle and require you to use it
in the business.

Remember; you are NOT the corporation, and you have to be
careful to dot all your i's and cross your t's.

Cheer$,
Harlan Lunsford, EA n LA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

knichols[at]rfoods.com (Kerry Nichols) wrote:
- quote -

What about using a form 2106 on his personal return and
getting the Section 179 deduction there? The Sec 179 is a
much larger deduction than mileage reimbursement. Could
still use actual expenses in addition to Sec 179 deduction
of over $30K.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Harlan Lunsford <lunstax[at]bellsouth.net> wrote:
- quote -

Harlan is correct.

The S Corp can't deduct any expenses associated with the
vehicle including depreciation because it does not own the
vehicle.

The S Corp could re-imburse the owner using the IRS cents
per mile under an accountable plan.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Paul A Thomas wrote:
- quote -

Problem is, Paul, that the corporation didn't take title to
the vehicle.

Cheer$,
Harlan Lunsford, EA n LA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"DB" <jul712[at]yahoo.com> wrote

- quote -

This is going to have to be run through the "S" corporate
return.

--
Snowmen fall from heaven unassembled.
-------------
Paul A. Thomas, CPA
taxman at negia.net

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

I operate a S Corp business that I am the only shareholder.
I purchased a new vehicle with my personal checking and is
titled under my name not under the S Corp. I use the vehicle
80% for the S Corp business.

Can I deduct the 80% business use and the Section 179 on my
personal 1040 return eventhough the business income flows to
me through the S Corp? Do I use a 1040 Sch C to do this?

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->