Personal use of company car for Sch C?

[matt1]

Wondering how we account for PUCC for Schedule C filer?  Taxpayer has about 67% business use, do we need to increase income to account for the personal use of the vehicle when there is no payroll option to do so?

[qbteachmt · Accepted solution]

Sched C filers already Own this car; it is not a Company Car. It is a Personally Owned vehicle with Mixed Use. There is no taxable amount for using your own car for your own personal needs.You use the vehicle worksheet for the Commuting & Personal Vs the Business, to show the proper allocation. Only the Business part applies to the tax return and that is not a 2106 situation. You are not an employee of your own Sched C entity.

[matt1]

Thanks for the reply here. This is what I was thinking too.  I've typically seen this only with a Corp owning the vehicle.  The part that is throwing me off is that (I think) I can still do a business use proportional Section 179 deduction for the vehicle, since more than 50% of the use is business, but then if it is owned by the person, not the business, how does that work out?

[TaxMonkey]

The person is the business.

[qbteachmt]

Is there a reason you are not using Mileage Allowance?

[matt1]

Mileage allowance would be worth about $2K. Vehicle is greater than 6000lbs GVWR. I wanted to see if we had the option of going a S179 plus actual expenses for about $35K.

[TaxMonkey]

Why would the s179 not be capped at $25k? - maybe it was and you have lots of other expenses?

[matt1]

$25K S179 plus 50% bonus depreciation plus regular 5yr plus loan interest, and a little gas/insurance.

[George4Tacks]

In the 2106 input, at the top you can select where it goes - Schedule C #1, #2, ...., Schedule E #1, #2,....

https://accountants.intuit.com/support/tax/online/document.jsp?product=online&id=GEN72922&taxpro=tru... has how to do this