If I put advertising on my vehicle for my business, can I deduct the costs of operating that vehicle for tax purposes?
2007-07-04 10:38:00 · 5 answers · asked by what about government grants? 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
You can deduct the cost of the sign and you can deduct the mileage use for business, but you cannot deduct personal use of a business car. You knew that, didn't you?
-MM
2007-07-04 10:48:01 · answer #1 · answered by Anonymous · 2⤊ 0⤋
You can only count the intial cost of putting the advertising on your vehicle. You would need to use your vehicle to deliver products or say carry clients...it would be a stretch and if you were to keep a very careful milage log and could prove catagorically that specific miles were business related then....maybe...but you have to seperate out the miles you use when you go grocery shopping, when you go to movies, restaurant, etc. Not likely to be worth your while.
2007-07-04 18:36:08 · answer #2 · answered by LEC 4 · 0⤊ 0⤋
No you cannot. That is explicitly prohibited. You can deduct the cost of the advertising materials but you cannot deduct the cost of operating the vehicle.
2007-07-04 20:53:04 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
I believe that was a court case that pertained to this a few years ago.
A taxpayer tried to claim 100% of his miles on his car because he had signage on his car that advertised his business. He claimed that, even when driving for personal reasons, he was actually advertising his business.
The IRS disagreed and the Tax Court sided with the IRS.
2007-07-04 17:04:45 · answer #4 · answered by Wayne Z 7 · 1⤊ 0⤋
You need an accountant!
The answer to your question is "yes", but that will probably also entail you paying additional taxes on the car as an "asset" of the business.
2007-07-04 10:43:11 · answer #5 · answered by Anonymous · 1⤊ 2⤋