Leasing a Car Through The Business

[ETax847]

A prospect came into my office saying his previous accountant said he could lease a car through his business (S Corp) and write nearly the entire thing off, even though he would have some personal use with it.  Does anyone know of a good source of information on this topic?

 

Thanks

[michaelmars]

whats the business? Some businesses require the need to take a company car home to respond to calls at night.  than might negate the personal usage of the car.  Other side trips may be very insignificant. 

[Lion EA]

Would personal use of a company-owned car go on his W-2; therefore, letting the company deduct all between Auto Expense and Wages/Officer Compensation.  The officer/employee will have the extra W-2 income and resulting taxes, though.  And, I'll bet the insurance will be higher as owned by the company.  Still have to track biz vs. personal mileage.

[SaraEA]

Personal use will go on his W2.  I hope the company has an accountable plan or else ALL the use goes on the W2 and the client deducts the business portion on Sch A (subject to 2%).  I was at an IRS liaison meeting once where the agent said the only company vehicle that the IRS believes has no personal use is a cement mixer!

[michaelmars]

hearse, first responder vehicles, anyone on call etc.