Tax Law (Questions About Taxes)/S-Corp and car purchase


An S-Corp has a net profit of $50,000 for 2012. They wish to wipe their profit down to $0 so they end up paying no corporate income tax.  Is purchasing a $50,000 car one such method to achieve this goal?

I've heard that you can not write off the purchase price of a car, but that you can only deducts its depreciation based on mileage used, is this true?  If a car purchase won't work, what are all the ways to wipe out the net profit?  The methods I'm aware of are:

-increase employee salaries

-buy equipment (the issue here is the company is too small to actually digest $50k worth of useful "equipment" such as computers, office furniture, etc)

What other methods are there at an S-Corp's disposal?

you are totally confused.

the car is only partially right.

but s corporations dont pay any federal tax.

(their owners do).

where in the mix are you?

LOTS of other methods at our disposal - dont let the tail wag the dog though.  

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Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).


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