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Business & farm
You can deduct the interest on the loan under interest expense on the 1120-S. You can't deduct the entire payment since that is considered "debt service."
A better way of handling this, since the vehicle is in your name and not that of the business is for you to make the payments on the vehicle and have the S-Corp reimburse you, if this is provided for in the S-Corp documents.
‎February 25, 2021
7:44 AM