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Rented a car so I could drive for Lyft. Had an accident, not when working Lyft, but on personal time. Can I deduct the $2,500 for the repair as a business expense since the car was mostly used for business?

I did not have my own vehicle.  Hertz and Lyft have a business arrangement where Hertz rents vehicles to people for use as Lyft drivers.  Hertz does permit personal use of the vehicle, as well.  Hit a small animal on the highway, not while working, but while driving personally.  I paid a $2,500 deductible to have the bumper replaced.  Can I claim this expense as a vehicle business expense since the vehicle was used mostly for business?  Thank you!    

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ThomasM125
Expert Alumni

Rented a car so I could drive for Lyft. Had an accident, not when working Lyft, but on personal time. Can I deduct the $2,500 for the repair as a business expense since the car was mostly used for business?

The repair would be considered part of the cost of leasing the vehicle, so you can deduct it to the extent that you used the car for business. In other words, if you use the car 80% of the time for business, then you can deduct 80% of the repair cost.

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ThomasM125
Expert Alumni

Rented a car so I could drive for Lyft. Had an accident, not when working Lyft, but on personal time. Can I deduct the $2,500 for the repair as a business expense since the car was mostly used for business?

The repair would be considered part of the cost of leasing the vehicle, so you can deduct it to the extent that you used the car for business. In other words, if you use the car 80% of the time for business, then you can deduct 80% of the repair cost.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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