Vehicle ExpensesJul 26, 2021
If your corporation owns the vehicle that you drive, then the corporation should pay all expenses on the vehicle, including gas, oil, repairs, insurance, etc. You will need to report your mileage information to us by November 30th of each year. This includes miles driven for personal, commuting and business use. Any personal or commuting use will be included in your year-end W-2.
If you own the vehicle, then the corporation should not pay any of the expenses. All loan payments, gas, oil, etc., should be paid from your personal funds. The number of business miles driven should be listed on your expense report and reimbursed at the standard mileage rate.
Vehicle expenses are "hot" items during audits, so be sure you have written evidence supporting your business and personal mileage. Without this written proof, you could lose your entire deduction for vehicle expenses.
If you want to improve your business situation, get assistance now. Schedule your free consultation today or give us a call at (218) 491-4002. We're here to help!
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