Hello. I am filing S Corp and personal tax return myself this year. Me and my spouse are both shareholders. We run an office in home. We have two cars titled and registered as personal (not business), one car is mainly used for business related trips (over 90%). It was financed until mid 2019 when we paid it off, the loan was under our names, not the company.
I am not sure what to select under Business Info -> About Your Business in Vehicle Expenses
- Company X owned or bought vehicles for the business during the year.
- Company X reimbursed shareholders for use of their personal vehicles.
- Company X leased a vehicle for the business during the year.
Under these answers, there is a note saying
"Corporations can't deduct the expense of personal vehicles used for business unless a reimbursement plan exists. Individuals using their personal vehicles for business may be able to deduct vehicle expenses on their personal returns."
What should I select in this case?
Should I add vehicle deductions such as payments, insurance, fuel on 1120S or should I do it on personal return?
On my previous tax returns this car was listed as "Auto and truck expenses" on US 1120s form and on Form 4562. Schedule L on form 1120S was left blank.
