Sign on the Car=Business Mileage=Deductible?

published December, 2008

If you put a sign on the side of the car, does it make your mileage deductible? The IRS says it’s not the sign that makes mileage deductible—it’s the underlying purpose of the trip. If you’re driving for a business purpose, the mileage is deductible. If you’re trip is personal, or commuting, the trip is NOT deductible—even if there’s a sign for your business on the car. If you include this as a deduction and get audited, you’ll loose. (The SIGN is deductible, as advertising!)

Information like this is important for business owners to know—in advance of collecting information for their tax returns. You can find this, and other necessary info, in our new book, now available on Amazon.com.