Today TaxMama hears from Jim in Oklahoma with this challenge. “ I heard somewhere that you could deduct the expenses of a car with a sign on the door as an advertising expense. Any comments?”
Certainly you may deduct the expenses related to the car with the sign – the same way you would deduct any other business vehicle. The deduction is based on the total business miles driven.
Read chapter 4 of IRS Publication 463 – it’s all about auto expenses.
If you’re thinking that you may deduct all the expenses just because you placed a sign on the car…it doesn’t work that way. IRS addresses this question specifically in Pub 463, since it comes up so often.
I know there folks who are spreading that mis-information. It’s nonsense. Frankly, anything else you’ve learned from that same source is suspect.
And remember, you can find answers to all kinds of questions about auto expenses and other tax issues, free. Where? Where else? At TaxMama.com.[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]
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- IRS Publication 463 :: Travel, Entertainment, Gift, and Car Expenses
- IRS Publication 463 :: Advertising display on car.