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Level 1
July 13, 2020
Question

How does an owner/employee of an 1120S business deduct their business use of a personally-owned vehicle?

  • July 13, 2020
  • 1 reply
  • 15 views
Since the business (1120S) does not own the car, I'm thinking the deduction needs to be taken on the 1040 form as a business expense.  Is that correct?
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1 reply

qbteachmt
Level 15
July 13, 2020

An Employee turns in a Mileage report and gets paid per IRS rates. All of their expenses that are qualified as business expenses would be submitted for reimbursement under the terms of "an accountable plan" which the IRS states.

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sjrcpa
Level 15
July 13, 2020
The more I know the more I don’t know.