Can a more than 2% shareholder/employee of his S-Corp use the mileage rate deduction for auto use on the auto he drives in the business?

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sjrcpa

Level 15

The S corp can reimburse him, under an accountable plan, for business use of his vehicle using the standard mileage rate.

The more I know the more I don’t know.

R

RoaderAuthor

Level 2

According to the Code he can’t as a more than 2% owner but has to use actual expense .

sjrcpa

Level 15

For reimbursement?

You may be correct.

The more I know the more I don’t know.

J

jgcpa

Level 5

Regarding your question if a more than 2% shareholder/employee of his S corp use the mileage rate deduction for auto use drives for business... What if the the S corp does not reimburse due to lack of cash, Can the S corp take the deduction for mileage and credit Additional Paid in Capital?