I have a dentist PC Corporation. I bought a new car that was used for my business. I purchased the car under my own name. Can I still deduct 100% of the depreciation in the PC Corp?

ANSWER

The BIDaWIZ Team's Answer:

The short answer is that the company cannot depreciate the car on the corporate tax return unless it owns it and has title to the vehicle. Having said that, the corporation can setup an accountable plan in which the owner is reimbursed for her out of pocket expenses, which includes the vehicle depreciation. That reimbursement as a deduction on the corporate tax return. This is referenced in IRC Section 280F IRS Publication 463.