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Mileage Deduction for an S-Corporation

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valterra

Junior Member
What is the name of your state?Nebraska

I run a small business that I registered as an S-corporation
for liability concerns. Looking ahead to tax time, I pulled
up form 1120S, and can't find a place to write off my
mileage! I know exactly where to find it on a 1040,
schedule C, but I don't see any indication on the 1120 family
of tax forms.

I have no employees. 100% of the profit/loss falls onto me.
Is there a separate form for S-Corp's mileage? Do I need to
also file a schedule C? This is a big issue because I have
a lot of mileage this year.

Thanks in advance! I've gotten lots of advice on this website,
just haven't had to post a question until now. I've had a real tought time finding the answer to this one!
 
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Snipes5

Senior Member
Actually, there is another place to put mileage on a form 1040.

It goes on form 2106, which carries either to Schedule C if you're a Sole Pro, or to Schedule A (miscellaneous deductions subject to 2%).

So you put your employee business expenses, including mileage, on form 2106 and carry it to the A.

Snipes
 

valterra

Junior Member
Avoid the floor

Snipes5 said:
Actually, there is another place to put mileage on a form 1040.

It goes on form 2106, which carries either to Schedule C if you're a Sole Pro, or to Schedule A (miscellaneous deductions subject to 2%).

So you put your employee business expenses, including mileage, on form 2106 and carry it to the A.

Snipes
Any way to avoid the floor? I mean, with my previous business venture, (LLC), I could write off 100% of mileage. I chose S-Corp for liability reasons only. Would I have to have the Corporation reimburse me? I'm obviously trying to avoid the whole issue of salary because I want the profit / loss to just fall back onto my personal return (easiest).

Thanks for the quick reply! :)
 

abezon

Senior Member
The mileage expenses go on the 1120S as "other expenses" -- include an idtemized list. This assumes the corp either paid the car expenses directly or that you billed the corp & received reimbursement before 12/31. Hint, hint.

You can't really avoid the issue of salary. Not paying yourself a salary is one of the biggest triggers for an S-corp audit, since the IRS will assume you're trying to avoid paying SE taxes on the profits. As long as you report the net profits on a schedule SE, this shouldn't be a problem.
 

valterra

Junior Member
Wish they WOULD pay me!

As an employee, I would LOVE to earn a salary. Problem is that the company isn't making a profit. ;-) I see on 1129 that there's a space for "Other Deductions (attach schedule):" You're saying Schedule means itemized list. I thought they meant Schedule as in Schedule A, etc.
Am I right that I have to roll my 8829 (household) expenses into the next year because I won't show a profit? Can I carry those over year-after-year until I do? If that's the case, this poor little company is going to really struggle, nudge nudge.
 
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