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Level 4
March 22, 2023

How to reflect S-corp owner personal use of company vehicle on S-corp tax return IF it was NOT included on the W-2.

  • March 22, 2023
  • 2 replies
  • 23 views

S-corporation 50% shareholder used a company owned vehicle.  The payroll person/company did NOT include the value of the personal use of the vehicle on the s-corp owner's W-2 for 2022.

I realize one way to correct this is to prepare and issue a corrected W-2 to this shareholder that properly includes the value of the personal use of the company vehicle.

Is there another way to reflect the personal use of the vehicle on the S-Corp tax return and resulting K-1 to that shareholder instead of issuing a corrected W-2?    

Thanks in advance for your help!

 

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    2 replies

    pacoford
    Level 5
    March 23, 2023

    I have the same question. I will await a response. Thank you!

    IRonMaN
    Level 15
    March 23, 2023

    You need a corrected W-2.

    Slava Ukraini!
    mhkdgalAuthor
    Level 4
    March 23, 2023

    Thanks IRonMaN,

    Additional question:  If I prepare the corrected W-2, then does the S-corp still deduct the full amount of the auto expenses (100%) on the S-corp return?  I am thinking yes, the S-corp deducts the full amount and the shareholder obviously reports the personal use share on personal 1040 through the W-2 numbers.  Is that correct?

    Thank you!

     

    IRonMaN
    Level 15
    March 23, 2023

    Correct

    Slava Ukraini!