Deducting Vehicle Costs
Posted by taxguru on February 14, 2006
Q:
Subject: Tax question about vehicleI have my own business and I want to be able to write off mileage and my cost for he vehicle. If I have advertising signs on my vehicle are my mileage allowances still subject to percentage use rulings? That is the primary use of the vehicle is to advertise my business and get to and from appointments.
A:
If you are serious about running your business properly, you will engage the services of a tax professional who can give you guidance.
Any competent tax pro will tell you that just placing a sign on a vehicle doesn’t make the vehicle’s costs deductible. Any deductions for that vehicle will be based on the business miles driven, either via the IRS’s standard per mile allowance or based on a pro-rata percentage of actual costs.
Good luck.
Kerry Kerstetter
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