TCJA One Way to Deduct Personal Vehicle Used for Corporate Business

Do you operate your business as a corporation?

Do you own your business car personally?

If both answers are “yes,” be aware that thanks to the Tax Cuts and Jobs Act, employee business expenses are not deductible for tax years 2018 through 2025.

This means you can’t claim vehicle deductions as employee business expenses.

So, are you out of luck?

No. If you want to know your best course of action to take under the new law, read my new article titled Tax Tips: TCJA One Way to Deduct Personal Vehicle Used for Corporate Business.

Three ways our fact-filled article can help you:

1. We’ll explain the action your corporation should take. Here it is short and sweet. Your corporation should reimburse you for actual expenses on your vehicle including the Section 179 deduction, bonus depreciation, and five-year MACRS depreciation. You’ll get all the details when you read the full article.
2. We’ll provide a useful overview of the rules. Technically speaking, your corporation reimburses you under the accountable-plan rules. Under these rules, you, the owner-employee, must incur these expenses in the performance of your duties for the corporation. To get the whole story, read the full article.
3. You’ll learn why keeping relevant records is so vitally important. If you, the owner-employee, don’t submit adequate proof, your corporation must include the expense reimbursements in your W-2. If you can’t back things up with adequate records you could wind up paying substantial payroll tax penalties like the 100-percent trust fund penalty. Ouch! Want to stay out of trouble with Uncle Sam? Read the full article.