Can you write off a rental for DoorDash?

[RossonServices]

I have a unique questions. After doing all of the math it will be cheaper for me to rent a car and then door dash (I get a discount). 

The question is - Can I write of the amount I pay for a rental at the end of the year for my taxes? My understanding is that I can not take the standard mileage deduction which makes sense because I don't own the vehicle. However, I can use actual expenses such as cost of rental along with gas. 

Is my thinking on this correct? 

To break it down, if I rent a car every other week for 24 weeks and it cost me $150 for 7 days. Can I write off the $3600 at the end of the year it costed me to rent the car for business purposes. 

[Anonymous]

if this is the first year the rental vehicle is being used in your business you can choose between the two methods - standard mileage rate and actual costs. if you use actual costs that's the method you must use for all future years you use the vehicle.  if you choose the standard mileage rate the first year, you get to choose either method in future years. regardless of method, you are only allowed to deduct the portion of costs (other than tolls and parking for business) that bear the ratio of business mileage to total mileage. you must maintain records for the mileage. in addition when leasing/renting a vehicle there is an annual lease inclusion amount published by the IRS (when actual costs are used)

[Critter-3]

@Anonymous 

Since you do not OWN the car you can only use the actual expenses option... 

Using your car while at your business destination. You can deduct actual expenses or the standard mileage rate, as well as business-related tolls and parking fees. If you rent a car, you can deduct only the business-use portion for the expenses.

https://www.irs.gov/taxtopics/tc511#:~:text=Using%20your%20car%20while%20at,non%2Dentertainment%2Drelated%20meals.

[Opus 17]

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@RossonServices wrote:

To break it down, if I rent a car every other week for 24 weeks and it cost me $150 for 7 days. Can I write off the $3600 at the end of the year it costed me to rent the car for business purposes. 

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Yes, presuming that you use the vehicle 100% for work.  I suggest keeping a mileage diary in the car or on your smart device to track work and personal mileage since, if audited, the IRS may want to see proof that you actually never used the car for personal use (which seems unlikely).

You track all your actual expenses for the year, which I guess would just be rental fees and gas, and maybe insurance.  You can deduct the percentage of your expenses corresponding to the percentage of business use that you can prove.  If your own auto insurance covers the rental vehicle, you can include a percentage of that as well, but you need to allocate the cost between any other vehicles you own and only deduct the percent of business use that you can allocate to the work vehicle and work mileage.  You deduct parking and toll expenses directly related to work and don't have to allocate those on total mileage percent.

Since you are obviously working all the angles, let me point out that if you use a cash back credit card, your cash rebate is not taxable income, but your deductible expenses are the net you pay after the cash back bonus.

Also, let me suggest that renting a vehicle for commercial purposes may violate the rental agreement.  You may also be required to notify your auto insurance company so they can charge you a commercial rate, and if you don't, they can cancel your policy.

Good luck.