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Level 1
posted Mar 23, 2020 6:06:27 PM

Spousal use of Rental Car while Traveling on Business

Spouse A rented a car while traveling as an independent contractor to get from airport to lodging and lodging to the client, etc. Spouse B used the same vehicle during the day for pleasure. The gasoline used by Spouse B is clearly not deductible, since it was not for business use.

 

As Spouse A would have had to rent the car whether Spouse B was there or not, is the car rental cost deductible as a business expense? It was a fixed rate for unlimited miles. No gasoline would be deducted.

 

 

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1 Best answer
Level 15
Mar 23, 2020 6:17:44 PM

Yes, the car rental cost is  deductible as a business expense. The other use is only incidental.

1 Replies
Level 15
Mar 23, 2020 6:17:44 PM

Yes, the car rental cost is  deductible as a business expense. The other use is only incidental.