AlanT
Expert Alumni

Deductions & credits

If you rent a vehicle for business purposes, you can deduct the full cost as a business expense. Under this circumstance, you are probably better off not taking the mileage deduction, because it may not save you as much money as writing off the full cost of renting the car. For example, you may have taxes, insurance, and fuel costs added to the base rental rate. You can't write off the full cost of renting a vehicle and the mileage as well. You must choose one or the other.

 

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