Real quick, my wife owns a S Corp. I’m a minority stakeholder. We gross about $300k a year through it.
We have an RV that we used to use for family trips, but now only use it for the business. We use it when we head to shows and markets. Its an old classic RV, draws a lot of attention, and worth about $25k on comps. Its well over 9000#
Since we are only using it for business purpose, i’d like to depreciate the expense through the business, including ownership.
Can our business “pay” the owner (me), for the vehicle and offset that cost as a depreciating expense? We could always register the vehicle in the name of the business. The additional commercial insurance expense would be strongly offset by the tax reduction
Generally, a transfer of an asset by an owner who controls the Corp will be treated as a capital contribution and the Corp’s basis will be the owners basis in the asset. No gain/loss would be recognized on the transaction.
The transferors basis in their stock will increase.
Generally this is how I would approach the situation.
Yupp, this guy is either an accountant or does taxes.
U wanna do it as a contribution to ownership. So you don’t take a tax hit on ur personal income.
Ur S Corp basis will be ur basis. And if when it spits it back to you it’s at basis. You only take a tax hit if there is a gain when u sell it later.