How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Tax.appeal.168 Your Own Question
Tax.appeal.168
Tax.appeal.168, Accountant
Category: Finance
Satisfied Customers: 3737
Experience:  Tax Accountant
58285678
Type Your Finance Question Here...
Tax.appeal.168 is online now
A new question is answered every 9 seconds

I have a vehicle which I am personally financing. I would

Customer Question

I have a vehicle which I am personally financing. I would like to transfer ownership to my S-Corp. Is that If I am still making payments on the loan assigned to me personally?
Submitted: 2 years ago.
Category: Finance
Expert:  Tax.appeal.168 replied 2 years ago.

As long as the loan is assigned to you personally, you cannot transfer the vehicle to the S-Corp. SEE BELOW:

Company Owned Vehicle

If the company truly owns the car, then it must be titled in the company’s name. This might be a challenge with car loans and leases, but for the company to claim it as an asset and subsequent expenses the title needs to be in the LLC or S-Corp’s name. And if you buy the car yourself and then transfer it to the business, you might be on the hook for sales tax twice (technically).

REFERENCE SOURCE:

http://www.watsoncpagroup.com/kb/Automobiles-and-LLCs-S-Corps_169.html

Let me know if you require further assistance with this matter.