You may deduct the rental fee, along with insurance, gas, repairs, tolls, etc. on your Schedule C. Two very important caveats: You cannot depreciate the vehicle because you don't own it and make sure you keep a detailed mileage log so that you can pro-rate the expenses to the percentage of business use. This is the very first piece of information the IRS will ask for if you are ever audited.
P.S. The same rules apply if you decide to lease the vehicle instead of renting it.
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