Myth: I Can Deduct My Personal Car If I Put a Business Logo On It

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When you drive your personal vehicle for a trade or business, you can get a tax write-off only for the costs associated with the business use; not the expenses related to your personal use.


Myth: I can deduct my personal vehicle with a business logo magnet

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Let's start with the rule that the IRS does not allow a tax deduction for personal living expenses. Your vehicle is a personal asset that falls under the statute. So, the monthly car payment and daily commuting miles are non-deductible.

Even if you regularly drive a personal car for business purposes, you cannot re-characterize the entire asset as a business expense. It continues to be a personal expense except for the costs incurred with the business mileage. 
...the IRS does not allow a tax deduction for personal living expenses. Your vehicle is a personal asset...
This premise also applies when you place a logo, magnet or wrap on a personal car that displays your company name. Even though you are advertising your business, it does not change the personal nature of the vehicle.

TIP: You can deduct the cost of the advertising materials placed or installed on a personal car that promotes your trade or business.


Free small business tax tips

Get more details about mileage from our other article How to Claim Mileage from your Home Office.

DISCLAIMER: Please consult with your accountant, attorney and financial advisor before implementing any tips displayed on this website. DIY research does not replace the advice of a licensed professional who has thoroughly reviewed your file.