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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15301
Experience:  15years with H & R Block. Divisional leader, Instructor
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I have an two year old S corp. where I am a single pharmacist

Customer Question

I have an two year old S corp. where I am a single pharmacist consultant that goes to nursing homes in various parts of Georgia. I've been spending on average 11 nights a month in hotels but am considering on buying a inexpensive used travel trailer instead to spend the night in. Can my S Corp depreciate this expense? Could it be used on occasion for personal use. Like a weekend out of the month? What kind of recorded keeping would be needed?
Submitted: 2 years ago.
Category: Tax
Expert:  Robin D. replied 2 years ago.
Hello,Yes the S corp could purchase the trailer and depreciate it but if any personal use is made to you (an employee of the S corp) you would have that value added to your wages.Personal use is typically determined by taking the personal miles and multiplying them by the Federal mileage rate. If this is not a motor home then the time used vs business would determine the rate to add to your wages.You would need to keep track of the actual personal use time of the asset and then base that against the business time. The value of the usage would be wages to you.If you personally bought then you could claim the amount you spend for costs while on the road for fees to stay at a camping site.
Expert:  Robin D. replied 2 years ago.
You can post below if you need clarification.