"KJ Nichols, CPA" <knichols[at]rfoods.com> wrote:
- quote -

wouldn't the "proper" way to do this is to compare this
approach with Harlan's KISS approach, and figure which
yields the greater tax benefit, given the number of miles
anticipated for both business and personal use, type of car,
anticipated expenses, etc?

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shihalex[at]gmail.com wrote:

- quote -

The proper way to handle this is to purchase the car in the
company name.

- quote -

If she buys the car in the company name, then she would
depreciate it through the company.

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shihalex[at]gmail.com wrote:

- quote -

Any "company" car would have to be titled in the name of
the corporation for the corporation to deduct actual
expenses of same. AND the corporation would have to
impute wages for the fair market value of personal use
of said vehicle. A lot of bother.

- quote -

The old KISS principle applies here (Keep it simple... )
The corporation in it's first meeting should adopt what's
called an accountable plan, calling for reimbursing any
employee using their personal car on company business at
the standard IRS rate.

ChEAr$,
Harlan Lunsford, EA n LA

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My sister is starting a service that requires her to do a
lot of traveling by car to various job sites. She is
starting an S Corp for the business.

There are two questions:

1) can she purchase the car outright under her name and
still count it as a company car? or does she have to
purchase the car with a company check?

2) since she's not leasing the vehicle, can she use
depreciation of the car to count as a business expense?

Thanks.

Alex

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