We own a small business (S Corp) and are trying to reduce taxes for 2008. Is it possible to purchase a business car now (2009) and use the 179 Election on our 2008 Corporation Return, to write off the entire purchase as a deduction? Or do we need to do this for the 2009 Corp. Returns?

Thank you for any help!

Any expense in 2009 is reported on 2009 tax return.

DiverMom:

Corporate returns are a "different animal" when it comes to taxation, so you would be better served to pose this question to a tax consultant who specializes in S Corp tax returns.

I agree with MukatA. No deduction in 2008 for a purchase in 2009. Further, if the S corporation purchases the vehicle and it is used for personal purposes, there will be deemed taxable compensation to the person using the vehicle.