“Can the company claim regular deductions for mileage, depreciation and expenses? “--->To be deductible, The cost of operating a car, truck or other vehicle is tax-deductible when driving for business purposes,a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business.
“Does it matter if the car is driven domestically or internationally?”--->I do not think so . Since the S Corporation owns the vehicle,the deduction to the S Corp is based on actual operating expenses. The corporation is also limited by the business-use percentage of the vehicle.The corporation can, however, deduct all of the operating expenses of the vehicle without regard to the business-use percentage, if the personal-use percentage is treated as income to the employee. The corporation's deduction for the personal-use percentage should be treated as a compensation expense. (This is essentially what you have done, except you have not counted the 10% personal use as compensation)