Can I claim all mileage driven if I have magnetic advertising banners on my vehicle? Would this be considered constant advertising like having a paid monthly advertisement spot on a radio station?
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Hello MattCu,
No, you can't deduct all the mileage.
Even though you might be tempted to argue that an advertisement makes every trip into a business trip, tax law will not be on your side. In 2010, the Internal Revenue Service took a dental practice to court when the full use of the car was reported as a qualifier for a deduction because of an advertisement. It was determined that the dental practice was not allowed to deduct 100 percent of the car expenses simply because of vehicle advertising.
The cost of adding advertising to your vehicle is tax deductible. For example, if you spend $1,000 hiring someone to paint your logo on your car, you can deduct the full $1,000 as a business expense.
Hello MattCu,
No, you can't deduct all the mileage.
Even though you might be tempted to argue that an advertisement makes every trip into a business trip, tax law will not be on your side. In 2010, the Internal Revenue Service took a dental practice to court when the full use of the car was reported as a qualifier for a deduction because of an advertisement. It was determined that the dental practice was not allowed to deduct 100 percent of the car expenses simply because of vehicle advertising.
The cost of adding advertising to your vehicle is tax deductible. For example, if you spend $1,000 hiring someone to paint your logo on your car, you can deduct the full $1,000 as a business expense.
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