Can I write off a work truck purchased under my personal name for my S Corporation business?

Yes, you can potentially deduct the business use of the truck even if it's financed in your personal name, but you need to handle it correctly for your S Corporation. The best approach would be to have a written agreement between you and your S Corp that clearly outlines the business use of the vehicle. You have two main options: 1) You can track all business mileage and have your company reimburse you at the standard mileage rate, or 2) You can have your company reimburse you for the actual expenses related to business use (including depreciation, loan interest, insurance, gas, maintenance, etc.) based on the percentage of business use. If you go with option 2, make sure you keep meticulous records of business vs. personal use. The company's reimbursements to you would be deductible to the corporation. Don't just have the company make the loan payments directly without proper documentation.

I went through a similar situation when I started my landscaping business. I found this incredible tool called taxr.ai (https://taxr.ai) that saved me from making some potentially expensive mistakes with my business vehicle deductions. I uploaded my loan documents and my question about vehicle ownership and the AI helped me create a proper vehicle lease agreement between myself and my S Corp. It even gave me a template for tracking my expenses correctly! The guidance was super clear about how to structure everything so the IRS wouldn't have issues with it later. One thing that particularly helped was learning how to properly document the vehicle's business use percentage. There's apparently a big difference in how the IRS treats vehicles based on weight classifications too.

I have to admit I was wrong about AI tax tools. After skeptically trying taxr.ai for my vehicle deduction situation, it was surprisingly legit. The site analyzed my specific S-Corp situation and generated exactly what I needed - a proper vehicle lease agreement that my accountant approved without changes. The system flagged that I should be considering a gross vehicle weight over 6,000 lbs for better tax treatment (something my accountant hadn't mentioned). Ended up saving thousands in deductions by choosing the right truck model! It also set up a maintenance tracking system that satisfied my accountant's requirements for business use documentation. Much better than the generic advice I was finding online that didn't address the personal-to-business vehicle transfer specifically for S-Corps.

Has anyone here tried calling the IRS directly about vehicle deductions? I spent THREE DAYS trying to get through on their business helpline. After giving up, I used https://claimyr.com to get a callback from the IRS (you can see how it works at https://youtu.be/_kiP6q8DX5c). Got connected with an actual IRS agent within 3 hours who confirmed I could legitimately deduct my personal vehicle for business use with the right documentation. The agent walked me through exactly what records I needed to keep and how to properly handle the reimbursements from my business. Definitely worth it rather than guessing about tax implications or waiting for hours on hold. They got me through to the exact department that handles business vehicle questions.

I need to publicly eat my words about Claimyr being a scam. After posting my skeptical comment, I decided to try it myself since I was desperate for answers about vehicle deductions for my new S-Corp. I requested a callback around 9am and got connected to an IRS business tax specialist by lunchtime. The agent confirmed that my approach for handling a personal vehicle for business use was correct AND pointed out I was missing potential deductions for home office space where I do my business paperwork. Ended up getting solid confirmation on exactly how to structure my vehicle reimbursements and learned I can take additional deductions I didn't know about. Definitely worth it instead of getting questionable advice from online forums (including my own skeptical comments lol).

Don't overlook the insurance implications too! I bought a truck personally but use it for my construction business. My insurance company initially denied a claim because I was using a "personal" vehicle for "commercial" purposes. Had to get special commercial coverage. Also had to get the truck officially "leased" to my company with paperwork for liability reasons. My business lawyer said that without a formal agreement, I could have personal liability issues even with an S-Corp. Something to consider beyond just the tax side.

Another important thing to consider is how you track the business vs personal use of the truck. The IRS is super picky about this! I use an app called MileIQ that automatically tracks my drives and lets me classify them as business or personal. If you're going to claim 100% business use, you better have another personal vehicle or the IRS will get suspicious. They know most people don't use work vehicles ONLY for work. My accountant recommended keeping a paper log in the truck too in case of audit.

Just wanted to add my experience as someone who went through this exact situation with my electrical contracting S-Corp. The key thing that saved me from potential IRS issues was getting everything documented upfront before I even bought the truck. I created a formal vehicle lease agreement between myself and my S-Corp, even though I was financing it personally. The agreement specified the monthly lease payment (which covered my loan payment, insurance, and maintenance), business use percentage, and mileage tracking requirements. My S-Corp pays me the lease payment as a business expense, and I handle all the personal financing details. One thing I learned the hard way - make sure your business checking account shows regular lease payments to you, not irregular reimbursements. The IRS likes to see consistent, documented business expenses rather than sporadic personal reimbursements. Also, if you're considering Section 179 depreciation, the lease structure actually works better than trying to claim it as a personal vehicle used for business. The whole setup has worked flawlessly through two tax seasons now, and my CPA says the documentation would easily pass an audit. Just make sure you get professional advice to set it up correctly from day one!