Can I Deduct Vehicle Expenses Through My S-Corp?

Yes — an S-Corp can either own a vehicle directly and deduct all business-use expenses, or reimburse you (the owner-employee) for business miles under an accountable plan at the IRS standard mileage rate. If the S-Corp owns the car, personal use must be reported as a taxable fringe benefit on your W-2. The mileage reimbursement approach (through an accountable plan) is simpler: you keep a mileage log, submit it to the S-Corp, and the company pays you the standard rate — tax-free to you, deductible by the S-Corp. Either approach works, but the accountable plan reimbursement method avoids the complexity of tracking personal use of a company car. Keep detailed mileage logs regardless of which method you use.