Don't Let Your S Corp Take the Wheel: Why Business-Owned Cars Can Drive Up Your Taxes

When physicians and other business owners elect S corporation status, one of the first questions they ask is:

"Should I put my car in the business?"

It seems logical. If the business uses the vehicle, shouldn't the business own it?

Surprisingly, the answer is often no.

While there are situations where S corporation ownership makes sense, personally owning your vehicle and using an accountable plan is frequently the cleaner, more tax-efficient option.