Discussion:Vehicle not owned by S Corp
From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
(Difference between revisions)
| Revision as of 22:54, 15 November 2005 207.200.116.8 (Talk) (New Discussion) ← Previous diff |
Revision as of 22:07, 16 November 2005 Cpasupport (Talk | contribs) Next diff → |
||
| Line 5: | Line 5: | ||
| The company would like to eventually have the vehicle registered under the business. What are the pros and cons of having the OWNERSHIP TITLE under J's name but the vehicle registration under the company name? She would like to have both the title and registration under the business name, but the concern is "transferring" the loan, i.e., need to make a "new" loan.}} | The company would like to eventually have the vehicle registered under the business. What are the pros and cons of having the OWNERSHIP TITLE under J's name but the vehicle registration under the company name? She would like to have both the title and registration under the business name, but the concern is "transferring" the loan, i.e., need to make a "new" loan.}} | ||
| + | |||
| + | {{ForumReplyPost|UserID=Cpasupport|Date=16 November 2005|Text=Perhaps code section 351 transferring assets to a"just starting out" S corp will work. If you have a Schedule C with assets such as a vehicle that then incorporates I belive Code Section 351 allows you to transfer those assets/depreciation balances to the corporation. Obviously title is not always able to be transferred if there are debts, so I think you can go ahead and write-off the vehicle on the corporate tax return under possibly an extended doctrine of code section 351 even if the truck is not in the corporate name. | ||
| + | |||
| + | **Tell the client to ask their insurance agent a question or two. If the truck is in the business name do I have to carry a commercial policy (Usually bigger $$$)? If the truck is in the personal name am I covered with a personal policy am I covered if I have an accident while on the job? }} | ||
Revision as of 22:07, 16 November 2005
Discussion Forum Index --> Tax Questions --> Vehicle not owned by S Corp
207.200.116.8 (talk|edits) said: | 15 November 2005 |
| S Corp uses a specialty work truck that was purchased by the company's president "J". He is the majority shareholder. Truck is used 100% for business. At the time of purchase, the business was just starting out, so J made the loan under her personal name, and also titled and registered the vehicle under her name instead of the company's. For the company to properly claim the related vehicle expenses, what kind of documentation should the company have?
The company would like to eventually have the vehicle registered under the business. What are the pros and cons of having the OWNERSHIP TITLE under J's name but the vehicle registration under the company name? She would like to have both the title and registration under the business name, but the concern is "transferring" the loan, i.e., need to make a "new" loan. | |
Cpasupport (talk|edits) said: | 16 November 2005 |
Perhaps code section 351 transferring assets to a"just starting out" S corp will work. If you have a Schedule C with assets such as a vehicle that then incorporates I belive Code Section 351 allows you to transfer those assets/depreciation balances to the corporation. Obviously title is not always able to be transferred if there are debts, so I think you can go ahead and write-off the vehicle on the corporate tax return under possibly an extended doctrine of code section 351 even if the truck is not in the corporate name.
| |
