Firstly, for an S-Corporation to deduct Vehicle Expenses which includes depreciation, the S-Corporation MUST hold title to said vehicle. An S-Corporation can deduct the BUSINESS MILEAGE for the use of a personal vehicles at the current federal mileage rate if the Operating Agreement of the S-Corporation has an Accountable Plan that clearly states the reimbursement to employees for the business miles when using their personal vehicles for ordinary and necessary business activities. Employee-owners of an S-Corporation also qualify for the reimbursement for the use of their personal vehicle under the Accountable Plan.
If a car that is FULLY Depreciated is owned by the S-Corporation there are still other expenses, gas repairs etc that can be deducted or use the Standard Deduction for Mileage, if they qualify.
The Auto Expenses of an S-Corporation
