David Posted July 31, 2015 Report Posted July 31, 2015 S Corp started leasing a vehicle that is used approximately 68% for business.The value of the vehicle is $53K. After the capitalized cost reduction ($3K) and residual value deduction ($37K) the 36 monthly lease payments are $18K. This appears to be an operating lease and not a capital lease.Therefore, do I simply record the lease payments as lease expense and make sure that the personal use is reported on the shareholder's W-2?Also, the lease began in 2014 and the personal use was not reported on the shareholder's W-2. How would most of you handle this situation?Thanks. Quote
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