Can I deduct this advertising against my car?

Question

We have all seen those temp magnetic or vinyl signs on cabs and such advertising for companies or business. If I were to put the same on my car could I deduct the equivalent amount of my car payment as advertising expense?

And If I can would I need to get a couple quotes every so often on such adverting to create a baseline?

And if I can deduct that, can I still also deduct for mileage driven in direct relation to business activities?

Thanks
Bryan

Don Konipol · Answer

If you do that you might as well send a cover letter with your tax return requesting an audit!

David Beard · Answer

This would not be deductible.  You can only deduct things you actually spend money on (ie. the cost of the sign itself).  That's why your personal labor in doing repairs is not deductible.

You can deduct your mileage at the .50/mile rate when you're driving related to your business.  Perhaps your question is:  can I deduct my personal mileage when displaying this sign on my car, since I'm constantly fostering my business?  Again, the IRS would no doubt say no.  Lots of people have marketing of some sort adorning their vehicles, so it would be silly to think you can take a deduction for slapping a sign on your car.

James Hiddle · Answer

I suggest you talk to your CPA or tax expert to see if you can.

Account Closed · Answer

If I'm not mistaken, if you want to use your car as a business expense it needs to be a company vehicle under whatever tax shelter you have it (ie inc. etc) You then have to keep records on mileage, gas, etc. labeling what you were doing when you drove those miles. The car magnet would also be a business expense. Just like business bank accounts when doing your taxxes, they like it kept separate from personal. Don't quote me on that though.

Can I deduct this advertising against my car?

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