s-corp buying a $3K car - can i expense entire cost? what about repairs?

Be sure to let us know what he says about this two month expense. In short, since you're talking only about two months usage, you can't depreciate it since you'll get rid of it I asssume. Even if you didn't get rid of it, you can't justify all that expense "writeoff". Take a cab or the bus.

ChEAr$, Harlan Lunsford, EA n LA

Thanks so much for your response, Harlan!

If that is the case (of only using it for 2mo) then I will simply correct that by driving it to the next client site, where ever that may be in the US, and continuously use that as my mode for transportation for business related efforts. But then it really comes down to this: I know when I purchase the car, that part has to be depreciated (unless I buy a clunker, like a $3K car). But what about repairs?? Let's say I buy a $2K car, then it needs $5K worth of repairs and then it becomes almost as good as new. Can I take the full deduction on the $5K of repairs? Then it would be appealing to me (and add a piece of mind.. replace anything that hasn't been replaced in the past few years,, good as new!). Kyle

Why not? $2000 to buy (less, say, $500 at sale) is a lot less than the $2800 he'd otherwise pay for rental cars.

Cabs could prove even more expensive, and buses infeasible.

Seth