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Advertising on cars

peggygallo
Level 2

My client has a magnetic sign for his business on his car.  He wants to deduct ALL his mileage for the year because the sign is always on his car advertising his business.  I told him the cost of the sign is deductible and business related miles, but the personal miles are not deducible.  Do you agree?

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Accepted Solutions
IRonMaN
Level 15

Believe it or not, this isn't the first time someone has come up with that gem on this forum.  You are right.  Tell him to go back to bed and dream up a better deduction for the next try.


Slava Ukraini!

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6 Comments 6
IRonMaN
Level 15

Believe it or not, this isn't the first time someone has come up with that gem on this forum.  You are right.  Tell him to go back to bed and dream up a better deduction for the next try.


Slava Ukraini!
qbteachmt
Level 15

Unless he is being Paid to be a rolling advertisement for some company, then the Use of the vehicle has nothing to do with business, just because there is a sign on it. The use of the Vehicle stands separately from whatever sign is on it, unless Advertising is the income stream.

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Terry53029
Level 14
Level 14

I agree 100%, if you google that subject you will see court cases of people that tried that, and was unsuccessful

BobKamman
Level 15

That's funny, I saw one of those magnetic signs the other day and it made me think of the old days when the unsophisticated self-employed thought it was a magic way to convert personal expenses to business.  

Just-Lisa-Now-
Level 15
Level 15

One of the long running tax deduction myths!


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
TaxGuyBill
Level 15

Publication 463:

 

Advertising display on car.

Putting display material that advertises your business on your car doesn’t change the use of your car from personal use to business use. If you use this car for commuting or other personal uses, you still can’t deduct your expenses for those uses.

https://www.irs.gov/publications/p463#en_US_2019_publink100033920