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Old 08-29-2010, 09:56 AM
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s corp buying vehicle contracts from owner

I bought two vehicles for business use only using my personal credit as the corp is brand new, how or can i get the s corp to purchase these contracts and payments, will the lending agency go along with it?



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Old 09-02-2010, 07:43 AM
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I don't think the lending institution would generally allow your newly formed corporation to take over the loan. You can however, make payments from the corporation and report the vehicle as being owned by the corporation, and pay all the related auto expenses from the corporations.

I would suggest that you prepare corporate minutes to show that the vehicle has been contributed to the corporation by you, the officer! Any payments that you personally made can be treated as a loan from Officer and thus the entire purchase price and loan can be reported on the corporate tax return along with the interest expenses and depreciation of the vehicle being deducted against corporate income.

Your Accountant will know how to handle the vehicle purchase and depreciation of the vehicle.

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