Hello again, lettyfuentes2013:
My supervisor is informing me that I've been spending too much time on this thread, so this is unfortunately the last time I can answer here. For any additional questions, please open up a new thread on the AnswerXchange, or call us for live agent support at:
help at <a rel="nofollow" target="_blank" href="
https://support.turbotax.intuit.com/contact/">https://support.turbotax.intuit.com/contact/</a>.
Quickly, then let's go through your list. Yes, you can take depreciation expense on the same asset for both your Schedule C and Form 1120S purposes in the same tax year. Just make sure that you adjust your "basis" in S-Corp assets downward to include or reflect any depreciation previously taken while an asset was "owned" by the sole-proprietorship.
With respect to the paid expenses question, you should (to be proper and correct) consider the S-corp expenses you paid personally as "capital contributions" made to the S-Corp. That treatment would go toward increasing your basis in S-Corp stock. If you then consider that you "reimbursed" yourself through the S-corp, this could be thought of as a nontaxable return of capital. But I would also consider the payments as having been made by the S-corp for expense purposes (i.e., figuring your income taxes, net income and such).
For your last question about car expenses, I would respectfully refer you to a TurboTax webpage we have on this very tax topic. There's a really good section about halfway through that discusses cars and S-Corps / C-Corps. One of those circumstances, I think, fits your situation exactly. Here is the link:
<a rel="nofollow" target="_blank" href="
https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/Business-Use-of-Vehicles/INF1207...>
Thanks again, lettyfuentes2013. I'm glad that I could help you as much as I could. Good luck with your continued business.
