Rental car damage on business

[sdickie]

I sustained and had to pay $500 for damage to rental car I was using on a business trip.  I am self-employed and claim the rental as an expense on Schedule C.  Can I claim the damage?

[Carl]

Was it really damaged? I ask, because $500 seems kinda low. That's also the standard amount (at least around my parts) they charge for smoking in a rental vehicle.

Basically, if the damage was incurred in the "pursuit of business" (I can't think of a better term) then you can claim it as a business expense. Most likely in the "repair" category I would think. Just make sure you have the documentation to back up your claim, just in case.

[sdickie]

Yes, but a mis-type by me. Actually, $800 damage. No negligence on my part - a rear fender scratch and dent.  Disputed but this is the amount we settled. Like the term “in pursuit of business” and will look under repair area on schedule C. Thanks for quick reply.

[Critter-3]

I always walk around the car with the car rental person before leaving the lot and I take pictures with my phone to either note the prior "damages" or the lack there of ... better to be prepared for the worse.

[Mike9241]

@Carl probably not low. just the deductible.

[Opus 17]

You can’t deduct as a business expense, anything illegal.  So for example, if you were doing burnouts in the parking lot and hit a light pole and the responding cop wrote you a ticket, the cost of the damage is probably not a deductible business expense.  

But in general, your damage payment would be a business expense just like an insurance premium or the deductible in the event of a covered loss.