As an LLC partnership about 17 years ago, an accountant listed a used vehicle purchase as an asset ("listed property"). By looking at our depreciation list, it looks like this was depreciated over 5 years ("conv method" = "5 HY 200DB")? At the time that vehicle was used for business and a separate one for personal; that's what that accountant told us to do. Years later a different accountant told us to track the business vs personal mileage and that both vehicles could be used and my understanding is we filed a certain percent of use for both. Most recently, a different accountant had us change to filing as an S-Corp and to lease both vehicles from ourselves personally to the business at a cost of 2.5% of the original vehicle cost per month. We also still track business vs personal mileage and my understanding is the accountant applies the percent used for business to all receipts categorized as vehicle expenses. Since this has spanned so many years now, and the first vehicle is fully depreciated, and we've changed our tax filing status to S-Corp, is the first vehicle a personal vehicle or does the business "own" it? Once it was fully depreciated, my understanding is the IRS deems it as no longer having a useable life, but we still operate it. How do we capture the expense of it's use by the business now? Do we do the monthly lease, also track mileage percentage, pay all receipts by the business, and then claim the appropriate business use percent of those receipts?
