Do you operate your business as an S or a C corporation?
Do you drive a vehicle titled in your personal name for corporate business?
Beware. The Tax Cuts and Jobs Act (TCJA) changed the rules for tax years 2018-2025.
Before the TCJA, you had to pay attention to the use of your personal vehicle for corporate business in order to avoid losing deductions to the 2 percent miscellaneous itemized deduction rule and the alternative minimum tax.
But now, because of the TCJA, you face a narrow road during tax years 2018-2025 if you want tax benefits for the corporate business use of your personal vehicle.
The personal vehicle used for corporate business is a business vehicle to the extent of corporate use.
If you don’t want to lose your rightful tax benefits from your business use, your corporation must reimburse you for your business use.
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