More than 5 percent owner

If a c-Corp purchases a truck which is then driven by an employee who owns 25% of the stock. The employee uses the truck 80 percent for bus. 20 for personal. The company adds the value of personal use to w-2 Can the company depreciate 100% of the cost? Or is it limited to 80%?

posted

100% since the value of the personal use is being added to that employee's w-2.

there are multiple methods that can be used to figure this value

https://www.patriotsoftware.com/blog/payroll/personal-use-company-vehicle-car-tax-pucc/

Just be sure the business doesn't deduct that part of the wages. You can't deduct the full depreciation AND that same amount again as the fringe benefit/wages.