Company Owned vehicles means the company owns the vehicle, so the company covers the costs of operation. It is a type of asset, so you handle that appropriately.

Any employee using the vehicle for personal is Taxed through payroll on the Value of that usage.

Keep a mileage log.

I know what company owned vehicles mean.  That wasn't my question.

Secondly, just to clarify, my question is if a company pays an independent contractor separately for the use of the independent contractor's vehicle, how should those expenses be reported on the 1120s?

Are you one of the CPA's that are answering the questions this afternoon?  I meant the question to be for them.  Thank you!!!

"That wasn't my question."

You asked: "How should I account on expenses for a vehicle the company owns"

Answer: "the company covers the costs of operation. It is a type of asset, so you handle that appropriately."

If you don't like the answer, you can certainly wait to see if you get a different one. You also can read the publication 463 yourself.

"Secondly, just to clarify, my question is if a company pays an independent contractor separately for the use of the independent contractor's vehicle, how should those expenses be reported on the 1120s?'

As part of Gross Payments to that name, subject to 1099-M reporting as well. It's just a type of Fee from that name as justification for further payments that is their revenue. Whether they charge you by actual mileage or time or distance is really not applicable, because it is payment to the Subcontractor. It's not Vehicle Expense to the business incurring this as a cost. Assuming now that "the company owns" and this Subcontractor are not the same company? Because perspective matters.

"Are you one of the CPA's that are answering the questions this afternoon? I meant the question to be for them. Thank you!!!"

If you look at the Topics here, you will see that, although this is nearly the end of the 2 hour window, no one except the Community is answering the questions being asked. So, I guess it depends on if you wanted answers, or don't.

Let me try one more mind-reading session: Perhaps you have a situation where a company Leased From that contractor, such as happens in construction or the trucking industry?