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Updated over 7 years ago on . Most recent reply
Magnet Signs and/or Car Wrap Tax Deduction
Hello I have a question concerning car magnet signs and car wraps as a tax deductible expense.
I currently have car magnet signs placed on my automobile. I have those signs on my car 24/7. These signs are on my car when the car is used for business (like driving to a meeting with a seller) and for personal use (like going to the grocery store). Since the signs are always on my car, can I write off everything such as all milage and expenses related to the upkeep of the car as a travel expense or am I still required to keep personal millage and business milage on a milage log separately and am only allowed to take the standard millage deduction?
I am thinking I could write everything off as a advertising expense but I also realize my thinking could totally wrong. I am looking for a new CPA otherwise I would ask the CPA.
Also, does it make a difference if it is car magnets or a car wrap done to my car if I can write it off as an advertising expense?
Thank you in advance for your assistance.
Most Popular Reply
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@Shawn C. the cost of adding the advertising to the car is deductible (signs, labor, etc) but just because you add advertising to the car does not make the use of the car a deductible business expense.
Here's a tax court case where a dental practice was challenged by the IRS on this very issue. The IRS won.
http://www.ustaxcourt.gov/InOpHistoric/WILLOCKC.TCM.WPD.pdf?_ga=2.242373953.2119717688.1502723604-1431854774.1498610952