Hi Tax Guru, GREAT site! Thanks for the clear and concise advice!
I formed my s corp in WI in 4/08, took mileage expense on 1 car for 08 taxes. When looking at total usage, this car is solely used for business. It is a new car and I (the 100% shareholder) am making payments. Your calculator tells me that the s corp owning the car would be a better write off than the mileage rate.
1. Does the scorp need to take out a bank loan to purchase the car or do I just draw up a note and make payments out of the scorp account starting now?
2. Do I need to transfer the title to the scorp, then?
3. Will I write off payments and what form does that go on?
4. Will I also depreciate this asset and what form does that go on?
5. Do I also then track gas, maintenence, taxes, interest from the loan to write off and what form does that go on?
Thanks in advance for your help!