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Level 1

I have an S-Corp. How should I deduct business mileage?

I have an S-Corp. I use my personal car for business If I do not reimburtse myself for the expense, milage, how can I deduct this cost from my income? Must I writge myself a check to deduct the milage?"

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Accepted Solutions
Alumni bwa
Alumni

I have an S-Corp. How should I deduct business mileage?

You do not need to write yourself a check.  You can deduct the mileage or percentage of actual expenses on your own return as a employee business expense the same as any other employee.

Alternatively, the S-Corp could reimburse you and deduct the reimbursement.  If done at the Government mileage rate for only business miles, it wouldn't be shown on your return.  If reimbursed under some other method, you would report the expenses reduced by the reimbursement.

One thing that you can't do is let the S-Corporation claim the mileage, as the S-Corporation doesn't own the car.

4 Replies
Level 1

I have an S-Corp. How should I deduct business mileage?

Is a deduction on my personal 1040 limited to amounts over 2% of personal income as suggested by TaxGuyBill? If we claim the deduction on the 1120, must the corporation show a check or other receipt for the payment. The corporation may not have adequate cash here at year's end, to pay for all mileage accrued over the year. Can the corporation offer me something like a debut memo or an IOU, in the short term. The corporation operates on a "cash" basis.
Alumni bwa
Alumni

I have an S-Corp. How should I deduct business mileage?

You do not need to write yourself a check.  You can deduct the mileage or percentage of actual expenses on your own return as a employee business expense the same as any other employee.

Alternatively, the S-Corp could reimburse you and deduct the reimbursement.  If done at the Government mileage rate for only business miles, it wouldn't be shown on your return.  If reimbursed under some other method, you would report the expenses reduced by the reimbursement.

One thing that you can't do is let the S-Corporation claim the mileage, as the S-Corporation doesn't own the car.

Highlighted
Level 12

I have an S-Corp. How should I deduct business mileage?

It is generally best to submit the mileage to the corporation and have the corporation write a check to reimburse you for the expenses using the Standard Mileage Rate.

If you claim the expenses as an employee of the corporation, they are limited to the amount OVER 2% of your income.  If you don't otherwise itemize your deductions on Schedule A, your deduction would further be reduced or eliminated.
Level 2

I have an S-Corp. How should I deduct business mileage?

For 2018 taxes employees do not get any expenses