accountable plan for S Corp owner/employee and bonus depreciation

DCG · ‎07-03-2023

Hello All!

A quick question on the mechanics of this accountable plan.

Consider the following facts:

Client has an S corp (100% shareholder) and purchases a truck in 2022 under his personal name due to better financing
Client purchased truck in 2022 and plans to use it about 75% for business in his construction work
He completes the proper reimbursement form under an existing and implemented accountable plan for his S corp and wants to take advantage of Bonus Depreciation in 2022
Lets assume that the reimbursable amount under bonus depreciation is about $50,000 (75% of the purchase cost)
However, his S corp does not have the full $50,000 available to pay the reimbursement.

What are the options here?

Is is ok for the S corp to pay over time (creating a note payable to S corp shareholder) or do you have to show the $ actually flowing from the S corp to the Employee/owner all in one transaction?

Thank you