Can you write off vinyl car wraps advertising on your taxes

Can you write off vinyl car wraps advertising on your taxes

Advertise on your car! Make money while you drive around town! Write it all off on your taxes! Does that sound too good to be true? It might be, but there are some big advantages to advertising on your vehicle. Whether you get to the grocery store in a sharp sports car or a huge truck, we can design a vehicle wrap and apply it professionally. Read on to discover how you can benefit from a wrap on a commercial or personal vehicle! We can’t provide you with any in-depth tax advice – contact your tax professional for that – but we’ll tell you what we’ve seen work for others!

The Answer – Usually!

Can you write off vinyl car wrap advertising on your taxes? We’ll jump straight to the answer – usually! Generally speaking, how much of the car wrap you can write off depends on a couple of factors – namely, if the vehicle is used for work or personal purposes.

Wraps on Your Work Vehicle

The most common wrapped vehicles are those used for work or that are a part of a commercial fleet. In these cases, businesses can write off the cost of a vehicle wrap as a pre-tax business expense along with gas mileage and other approved vehicle operating expenses. Whether your vehicle needs windshield graphics, lettering, or a full wrap, these expenses on corporate vehicles are generally tax deductible to the business.

 

What if you paid for the vehicle wrap out of pocket? These wraps might not make your gas mileage tax deductible, but the expense of designing and applying the vehicle wrap or lettering itself may be tax deductible. 

Wraps on Your Personal Vehicle

Generally speaking, wraps on a personal vehicle used for work is partially deductible. You may not be able to write off the whole expense of the vehicle wrap, but you can write off the expense in part in the same way you write off unreimbursed gas mileage used for work purposes. Simply applying advertising graphics to your car does not change the purpose of the vehicle from personal to work use. Applying the wrap, however, if it is related to a work purpose or your own business purposes, may be tax deductible as allowed by law.

Writing Off Your Car Wrap

So how do you cash in on the tax deductions and benefits of wrapping your car? Consult your tax accountant or tax professional on how best to keep records and report your eligible expenses on your tax return. Read on for general tips on how to follow the letter of the law with your car wrap or lettering job.

Keep Your Receipts!

When you get your car wrapped or have the wrap repaired or serviced, keep the receipts! Good record-keeping can help your tax professional determine the deductibility of your expenses and protect you in the event of an audit. If you plan to deduct other vehicle expenses, keep those receipts together in a folder, file, or catch-all!

Record Your Mileage and Expenses

Keep a log of your mileage and car expenses related to work. Write in the purpose of each trip (and consult IRS Publication 463 for approved purposes) and the mileage you traveled. If the express purpose of your trip is for visual advertising of your or someone else’s business, the mileage may not be deductible. Still, a portion of the cost of your car wrap should be tax deductible as allowed by law.

Consult Your Tax Professional

Tax laws change over time, and deductions come and go. When you have in-depth questions about how best to maximize your tax deductions, consult a tax professional or accountant. When it comes to vehicle wraps and graphics – well, that’s our thing!

Get Your Vinyl Vehicle Wrap from the Best!

We handle everything from design to application for the best-looking, longest-lasting car wraps in the business! Contact us today for a custom quote.