| Will personal use of corporate vehicle be includable in W-2 income?
The IRS has clearly stated that "if the S corporation owns the vehicle, then all of the related auto expenses are deducted by the corporation on Form 1120 S Tax return."
However, the IRS has stipulated that the value of the "personal use" must be included in the employee's W-2. This is calculated as the % personal usage multiplied by the total auto expenses claimed by that employee on the corporation tax return. Alternatively, the taxpayer could also reimburse the corporation to the extent of the personal usage.
Generally speaking, most tax professionals prefer to report this personal usage value on the Officer/Employee's W-2 income. | 
