In general - for all fringe benefits purposes - 2% shareholders of an S corporations are NOT treated as an employee - and S-corporation must treat such benefits as wages.
Some other deduction items to consider
-- Business Use of Your Car - If you use your car in your business, you can deduct car expenses. If you use your car for both business and personal purposes, you must divide your expenses based on actual mileage. Refer to Publication 463, Travel, Entertainment, Gift, and Car Expenses
Current standard mileage rate
is 57.5 cents per mile
-- Business Use of Your Home - If you use part of your home for business, you may be able to deduct expenses for the business use of your home. These expenses may include mortgage interest
, insurance, utilities, repairs, and depreciation
. Refer to Publication 587, Business Use of Your Home, for more information.
But as we already mentioned - basis rules for determination whether any specific expense may be deducted for business purposes - it must be both ordinary and necessary.
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