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Can I deduct mileage on a rental car used for my business, if the rental costs were covered by insurance?

Although the rental car costs were covered by insurance, I still had to pay for gas, and the auto insurance I paid for covered that vehicle in case of an accident.

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Can I deduct mileage on a rental car used for my business, if the rental costs were covered by insurance?

No, you cannot deduct the standard mileage.  This accounts for general wear and tear to your asset and since it is not your asset you cannot deduct it.

You can, however, deduct the gas you put it in.  You can also deduct the auto insurance that you purchased with the rental. 

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3 Replies

Can I deduct mileage on a rental car used for my business, if the rental costs were covered by insurance?

No, you cannot deduct the standard mileage.  This accounts for general wear and tear to your asset and since it is not your asset you cannot deduct it.

You can, however, deduct the gas you put it in.  You can also deduct the auto insurance that you purchased with the rental. 

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

Can I deduct mileage on a rental car used for my business, if the rental costs were covered by insurance?

I understand I can write off gas expense for a rental car used for business. What category does this expense fall under?

Business expenses? 

Can I deduct mileage on a rental car used for my business, if the rental costs were covered by insurance?

You can either enter it under rental costs or make up your own category at the end of the expenses. 

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