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Deductions & credits
No, an S Corporation can't deduct auto expenses for a vehicle that it does not own. However, the S Corporation can reimburse you directly for the vehicle expenses.
- These paid expenses then reduce S-corporation income by that amount and only the reduced income passes through to you on your K-1.
- If you're not the only shareholder, you need to keep track of auto expenses and report them to the S Corporation so that all the S Corporation shareholder's share the expenses equally. See Business Use of Vehicles.
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‎January 13, 2020
3:25 PM