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Level 2
December 7, 2019
Solved

How do I enter an S Corp leased automobile into pro connect? Also, how do I show the income to one of the 50% S Corp owners for their personal use of the vehicle?

  • December 7, 2019
  • 3 replies
  • 25 views
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Best answer by TaxMonkey

When a shareholder receives use of a company vehicle as a fringe benefit that fringe is reported as wage income on their W-2.


Your question regarding "How do I enter an S-corp leased automobile" is a little vague, what are you trying to enter the lease payments? 

3 replies

TaxMonkeyAnswer
Level 7
December 7, 2019

When a shareholder receives use of a company vehicle as a fringe benefit that fringe is reported as wage income on their W-2.


Your question regarding "How do I enter an S-corp leased automobile" is a little vague, what are you trying to enter the lease payments? 

Level 2
December 7, 2019
Thank you both for you prompt responses and I apologize for the vagueness.  The shareholder is not an employee and therefore the noncash taxable fringe would be the only thing reported on the W-2. The company has no employees at this point. I guess I was thinking that perhaps there was a way to report it via the k-1. If not, then I'll prepare the W-2. Thank you for the deadline reminder!

I did enter the lease payments as expenses, however, when I was previously searching for guidance on reporting the lease payments/shareholder's personal share into pro connect the answers were directing me to the depreciation form. So then I started to think that perhaps there was a way that pro connect would have me enter the vehicle into that form and then by virtue of check boxes that it's leased, there's a lease buyout option, used primarily by more than 5% shareholder, number of total miles and business miles it would then automatically generate the prorata amount of the lease expense that was deductible and prompt me for any lease limitations.....

So, if that's not the case, then should I manually reduce the amount of the lease payments by the percentage that the shareholder personally benefited or do I just deduct them in their entirety and just pass the taxable fringe onto the affected shareholder via the W-2?
abctax55
Level 15
December 7, 2019

Lease expenses are recorded as just that...or could be entered under "equipment rental"

And a reminder...those W-2's are due tomorrow...

HumanKind... Be Both
Level 4
December 7, 2019

Is the vehicle lease in the individual's name or in the company name?

What is the buyout option on the lease?  If less than FMV, then you need to capitalize the vehicle and cannot simply deduct the lease payments.