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Can an S-Corp lease a car for the owner?

Yes. An S-Corp can lease a vehicle and provide it to a shareholder-employee as part of their compensation. However, personal use of the vehicle must be reported as taxable income to the employee. The S-Corp deducts the lease payments, and the employee reports the personal-use portion on their W-2. Proper documentation of business vs. personal mileage is essential.

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