DanielV01
Expert Alumni

Deductions & credits

Set up an accountable plan to deduct these.  It is not that hard to do.  This Intuit website will help:  Set up accountable plan

The S Corp cannot directly deduct these expenses.  First, the vehicle has to be owned by the S Corp in order to deduct any vehicle expenses, and then, the S corp can only use the Actual Expense method to deduct the expenses directly.  And, because the Tax Cuts and Jobs Act did away with the deduction for unreimbursed employee expenses (yes, you are an employee of your S-Corp and no longer a Sole Proprietor), you cannot deduct these on your personal return.

But through an accountable plan, you can get both.  By submitting the expenses to your S-corp, you get a tax-free reimbursement on those expenses and your S-Corp can now deduct the expense.  

I recommend you follow the steps outlined in that website to get your accountable plan set up as quickly as possible.  

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