Thank you for your quick response! After reading your answers I realized how this should be. I shouldn't have used % use for example. Basically yes, corps will reimburse employee for business use via a standard mileage rate.

The client purchased the vehicle solely to be used for his LLC 100%. Client then thought it would be easy/convenient to use vehicle for S-Corps as well if needed, where client (employee) could be reimbursed. Per your correct responses, this assumption would make vehicle mixed use.

The best option should be re-phased like this: LLC will report the vehicle use at 100% use; client should then use another "personal" vehicle for S-Corp business and get reimbursed via accountable plan.

Does this sound better? Thanks again.