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I am converting a personal vehicle into my s corp. I

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I am converting a...

I am converting a personal vehicle into my s corp. I understand the way to "donate property" and how that affects capital account. I still owe money on the vehicle and am making payments which have interest. Is the interest deductible under vehicle expenses?

Accountant's Assistant: The Accountant will know how to help. Is there anything else important you think the Accountant should know?

I assume I will also depreciate the vehicle beginning this year even though I have had it for 2 already.

Submitted: 4 months ago.Category: Tax
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3/15/2018
Tax Professional: Lev, Tax Advisor replied 4 months ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,119
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I am not clear what is the meaning of "converting" - ?

Are you changing the title to S-corporation?

Or you just started to use the vehicle for business purposes?
In any case - is that correct that teh vehicle will be used for personal AND for business purposes?

or only for business purposes and you have another vehicle for personal use?

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Customer reply replied 4 months ago
I have another vehicle for personal use but this will be used probably 15% of time for personal. by converting I meant that I was considering putting the value of the asset into the business. As I am the ony shareholder I had not planed to change the title.
Customer reply replied 4 months ago
Are we still communicating?
Will I be waiting for response long?
Customer reply replied 4 months ago
Should I disconnect? I have no knowledge if you are still responding as your response was questions not answers.
Customer reply replied 4 months ago
I have been waiting a long time now......what is happening. I just sent an email to VIP saying this is not a good first experience. Are you there? Are you alive? Are you still helping me?
Customer reply replied 4 months ago
I have now waited 8 minutes since I responded to your questions on my questions. Do I need someone else to talk to? At least please provide the courtesy of a response.
Tax Professional: Lev, Tax Advisor replied 4 months ago

If you are personally will hold the title - please consider that only teh owner may claim depreciation.

If S-corporation will use YOUR car for business purposes - it will only able to deduct actual car expenses.

S-corporation may NOT deduct expenses paid by you.

But if you are also an employee of the corporation - the corporation may reimburse you for business use of your car.

Please elaborate if you are willing to take this route.

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Tax Professional: Lev, Tax Advisor replied 4 months ago

I appreciate if you take a moment to rate the answer.

Experts are ONLY credited when answers are rated positively.

If you still have any doubts, need clarification - please be sure to ask.

I am here to help you with all Social Security / Tax related issues.

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Customer reply replied 4 months ago
You don't want me to rate the interaction.
Tax Professional: Lev, Tax Advisor replied 4 months ago

If the answer has no value for you - you may simply ignore it.

If you need any clarification - you are welcome to ask.

Otherwise - I will open that question to other experts to contribute.

Please advise.

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Customer reply replied 4 months ago
I cancelled service due to long time while you were off line. Approach does not work for me.
Tax Professional: Lev, Tax Advisor replied 4 months ago

Sorry to have you disappointed.

Your satisfaction is 100% guaranteed.

May be next time we may serve you better.

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