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question based on the information that you have provided.
First, I would recommend that you should only transfer the vehicle if the vehicle will be used 100% for business (By 100% business, I mean the car is parked at your place of business (not your home) and only driven for business errands). If the vehicle is used for business and personal use, you would be better served to keep track of business miles and have your S-Corp reimburse you for those business miles under a accountable plan
. By reimbursing mileage under an accountable plan (in which you give the corporation a mileage report every month from which the corporation reimburses you the IRS standard mileage rate
for the mileage on your mileage report) the corporation can deduct your auto expenses
and you get reimbursed for those expenses without having to report the reimbursement
on your personal return
. Having the corp reimburse you under an accountable plan is the cleanest way to handle your auto expenses for tax purposes.
If you are going to make the transfer, you should be able to do so by going to the Minnesota DMV
and changing the title from your name to your S-Corp.
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