[Taffy2525]

Here is the question: The owner of the company wants to sell his car to the company, before end of year, then take the money and go buy new Truck. Should he put the new truck in the company name so we can expense the payments for his taxes for next year or should he just put the new truck in his name? He is an S- Corp when he files his taxes.
Also, his truck he wants to sell to the company is a 91, is it to old to depreciate?

Thanks
Taffy2525

[morgaine300]

Putting the truck in the name of the company doesn't mean it's necessarily their expense. The company can only count the expenses of the truck if the company is actually using it for company business. If he's using that as his personal truck, trying to take the expenses off the books for the company not only isn't following proper accounting rules, but is certainly not deductible for tax purposes. If the company paid for his new HDTV, they couldn't count that off their income for taxes either. There's no difference. Doesn't that sound just a little like cheating to you?

If he sticks the thing in their name and they pay the expenses, but he's the one using it for 100% personal purposes, then it should go in as a distribution to him. If it's used part business and part personal, that's a different matter and a whole lot more fun to deal with.

Sounds like by selling the old truck to the company, the old truck is what's going to be used by the company. And yeah, it's probably too old to depreciate, but if the company buys it for an amount higher than what would be considered a salvage value, then there might be a tiny bit to depreciate. At that kind of age, I would assume it's already down to salvage value.