I am the sole owner for s corp. In 2018, I bought an electric vehicle Tesla S under my name. My questions are: 1. Do I list the vehicle as S corp asset? 2. If yes, am I putting the loan liability as S corp liability even though the loan is under my personal name? 3. I am entitled to $7500 federal tax credit. Do I file form 8936 on both my personal return and s corp? 4. Should I put the credit on K-1, part III #13, code P for the credit on business use?
The car is considered personal no matter how often you use it in your business. It is not in the S-Corps name. Therefore, any credits or loan liabilities are personal and should not be reported as a S-corp asset.
You can have the S-Corp reimburse you for the business percentage use of the vehicle under the actual expense method if you chose to pay all the car expenses.
You can also have the S-Corp pay some of the car expenses and classify it on the Form 1120-S as a loan or an advance to you.
The key is to retain meticulous records and keep mileage logs in case of an audit.
The car is considered personal no matter how often you use it in your business. It is not in the S-Corps name. Therefore, any credits or loan liabilities are personal and should not be reported as a S-corp asset.
You can have the S-Corp reimburse you for the business percentage use of the vehicle under the actual expense method if you chose to pay all the car expenses.
You can also have the S-Corp pay some of the car expenses and classify it on the Form 1120-S as a loan or an advance to you.
The key is to retain meticulous records and keep mileage logs in case of an audit.