Clint Wasser wrote:
- quote -

No, not missing anything atall.

He never said he is an employee. Notice he only said he is
a shareholder, and did not admit, confess that he was an
employee getting a W-2.

I can't see shareholders getting such a sec 179 deduction
even directly on schedule E, part II, line... ???/, because
shareholders as such do not incur ordinary and necessary
expenses.

But of course as employee, sure, schedule A with form 2106
with it's attendant haircut.

which makes all the more sense for my cents per mile
reimbursement properly documented in corporate records of
course.

Cheer$,
Harlan Lunsford, EA n LA

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

My understanding is a little different in that employees are
allowed to take a Section 179 deduction on their 1040 if the
other requirements of taking a section 179 deduction are
met. However, an employee would have to take it as a misc.
deduction on Schedule A, which would mean that they are
subject to the 2% floor on their (Sec 179 combined with
other miscellaneous) deductions. If the employee is willing
to live with this 2% reduction in order to take advantage of
the section 179 deduction, they may do so. If I'm missing
something, please let me know.

Clint Wasser, CPA

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

My understanding is a little different in that employees are
allowed to take a Section 179 deduction on their 1040 if the
other requirements of taking a section 179 deduction are
met. However, an employee would have to take it as a misc.
deduction on Schedule A, which would mean that they are
subject to the 2% floor on their (Sec 179 combined with
other miscellaneous) deductions. If the employee is willing
to live with this 2% reduction in order to take advantage of
the section 179 deduction, they may do so. If I'm missing
something, please let me know.

Clint Wasser, CPA

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DB wrote:

- quote -

I raised this very same question up there above somewhere in
response to a response to another post; or was it yours?

The way I see it, is that since the corporation did not buy
the vehicle, and the vehicle is not titled in name of
corporation, then the answer is "no". And certainly you
don't use schedule C!

The way I handle it is for my S corp to reimburse me at the
IRS mileage rate per mile and this is handled under an
accountable plan.

Cheer$,
Harlan Lunsford, EA n LA

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I operate a S Corp bookkeeping and business which 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 time.

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 and form 4562
to do this?

Thank You

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