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sdickie
Level 1

Rental car damage on business

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?

5 Replies
Carl
Level 15

Rental car damage on business

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
Level 1

Rental car damage on business

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
Level 15

Rental car damage on business

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
Level 15

Rental car damage on business

@Carl probably not low. just the deductible.

 

Opus 17
Level 15

Rental car damage on business

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.  

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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