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Accounting & Bookkeeping & Small Business Forum
Accounting, Bookkeeping, Marketing, and Small Business Resource
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Guest
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| Posted: Mon Jun 21, 2004 1:08 pm Post subject: Transferring auto to business |
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| Can anyone tell me the entry for transferring an auto onto the company's balance sheet. The auto loan is in the business owner's name and the S-Corp makes the loan payment and pays for all repairs. Thanks! |
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Guest
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| Posted: Tue Jun 22, 2004 9:32 am Post subject: RE: Transferring auto to business |
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The S-Corporation is a different entity, so the auto should be "sold" to the corporation at market value in order to transfer it to the company's books. Then the entry would be:
DR Automobile
CR Loan Payable to Stockholder
Note, that if the stockholder uses the company car for personal purposes, he/she should be charged a mileage rate, or have it included in his/her earnings at an agreed mileage rate.
For many the preferred way to work it is to leave the car in the stockholder's name, and have the stockholder charge the company for business use at 37 cents per mile. This becomes a reimbursement and not a taxable transaction. If this be the case, the stockholder should be making all payments and repairs an his/her own expense. |
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Guest
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| Posted: Tue Aug 24, 2004 8:49 pm Post subject: RE: Transferring auto to business |
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| Bryan, why wouldn't the Board of Directors make their newly acquired company car one of the perks for its employee; hence, "personal" mileage is part of the package? Isn't this legal? Isn't this how Donald gets about town? ? ? |
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