Writing off vehicle mileage when you have vehicle advertising

[john1]

Hey guys, I know you can either write off business mileage per travel trip or write off your gas.

If you have vehicle advertising on your one and only vehicle like the windows wrapped or the whole vehicle, Shouldn't that mean most of the miles driven are a write off because it's advertising?

Thanks!

 

[visual800]

every vehicle I have is a write off. Lettered or not. Its used in business. I dont care if its wrapped or has a set of mags on it I would write it off and my cpa has for the past 15 years.

 

[Sign-Man Signs]

Ditto. What he said.

 

[BobM]

If you are using your vehicle for business purposes you can write it off as a business expense. Same with fuel, repairs, insurance, washes, whatever. So long as you own another vehicle for personal/household use you shouldn't have any problems. You should have it registered with commercial plates if it has lettering. Just remember that you are always delivering or picking up or inspecting a job site or doing something company related during your commute.

 

[Billct2]

What they said. But if you only own one vehicle and it's use is mixed business/personal
then you need to keep a mileage log for documentation of business use. But I'm not a CPA I only play one on Signs101, so ask the guy with the expertise, or do a little research on the IRS site to see the requirements.

 

[AnotherSignManiac]

When I had my company, I just kept a log of miles, gas, repairs and the such. And my accountant figured out how much I could write off.

 

[TyrantDesigner]

Mixed use vehicles ... got to love them ... make sure they are not magnetic graphics ... it's harder to write off temporary use with temporary branding. As for the miles and gas, you can write them off on what you actually use for business use ... i.e if you goto best buy to pick up a dvd for the kids, or get groceries, or travel 1k miles to see the family ... not a write off. you'll need to keep a log of miles (mileage from start to finish) gas receipts, and any other vehicle expense. using your yearly mileage with the miles actually used for business can get you that percentage of maintenence deducted as well (oil changes, new tires, etc) Sometimes this will vary, check a cpa for specifics.

 

[Kevin-shopVOX]

If it is a mixed use (persona/business) you definitely need to keep a mileage log. One of the things I use that is very helpful is Expensify. Great program and has a free phone app. It will also download to Quick Books should you want it to. The mileage feature is nice because you don't actually have to track the mileage you just have to know where you went. You put a start and stop destination and it will google map the distance for you. However you should have an odometer start at the beginning of the year and a stop at the end of the year so you can tally the difference of personal/business use. Expensify is one of my top five most useful phone & web combo apps. Especially for free.

 

[gnemmas]

What OP's question is more as an Advertising expense, which does not matter if you grocery shopping or deliver a sign, it is all advertising.

Basically, you can wrap you vehicle, lease it to the company (at the same cost as you pay to lease the car) as an advertise expense plus fuel and maintenance cost.

The problem is, then the payment you received from the company is an income on your personal tax return. So you reduced company income, increased personal income. It is a wash.

 

[FireSprint.com]

We (owners) lease our cars. Our accountant has us do a vehicle mileage log which we track our business miles. It works out that about 70% of our mileage is for the business, so we write off 70% of the lease, taxes, gas, maintenance, etc.

It's pretty simple really.

It all really comes down to you being audited and what the auditor thinks. If you can prove to him.

http://www.irs.gov/taxtopics/tc510.html

You can also 'write off' the cost of the decals, but you did that anyway when you bought the vinyl, ink and took the deduction on the machine. There isn't really a way around this one. You can't deduct 100% unless you have another car.

 

[ProWraps]

can. o. worms.

do you have commercial insurance? if not >> end.

if yes >> continue.

do you log your mileage?

if not >> end.

if so >> continue.

thats my ghetto flow chart.

you better get real with your CPA.

 

[cdiesel]

We have other personal vehicles. Our shop vehicles are registered & titled to the company, insured, fueled, maintained, etc by the company. Some are driven home at night, some stay at the shop. 100% legit.

 

[visual800]

I dont care if Im doing a sign quote or running to grocery store. I keep no log the only log I keep is the start mileage from jan 1 thru jan1. who in the hell is going to know? Or let me say this to each his own. My mission is to keep as much of my money as I can instead of placing it in the hands of idiots.

We work too damn hard to get money and harder to keep it. Ill keep all I can get if I can help it. It's all an opinion. no one is right or wrong. We all just do things differently.

 

[klemgraphics]

I dont care if Im doing a sign quote or running to grocery store. I keep no log the only log I keep is the start mileage from jan 1 thru jan1. who in the hell is going to know? Or let me say this to each his own. My mission is to keep as much of my money as I can instead of placing it in the hands of idiots.

We work too damn hard to get money and harder to keep it. Ill keep all I can get if I can help it. It's all an opinion. no one is right or wrong. We all just do things differently.

Couldn't have said it better myself!

 

[WYLDGFI]

I write off part of my boat along with the truck that belongs to my biz. I entertain clients on the weekends, taking them out fishing. Couple of my vendors have had a blast out there as well. Along with that, its now wrapped for WYLDGFI "Fishing Team". Im able to write off a portion of all that goes with that now...dockage, mechanic costs...etc.
Visual...you're right...we DO work too damn hard to get money. We need to keep it anyway we can or at least spend it somewhere so Uncle Sam cant have it!

 

[joshGN]

I was under the assumption you can either A)write off mileage or B) write off expenses associated w/ specific vehicle.

What some of you are posting...is a mix of both of those?

 

[Techman]

joshgn is correct. It is either or
Either 55 cents a mile or the expenses.

Last year I took the expenses. Very little driving expenses.
This year I am taking the mileage. I will use a log book. IRS regs say one has to have the ability to prove or reconstruct travel mileage. That wlil be easy with motel costs and gas purchases out of town.

I will travel tons more driving to training seminars and talking to CNC noobies.

 

[FireSprint.com]

I was under the assumption you can either A)write off mileage or B) write off expenses associated w/ specific vehicle.

What some of you are posting...is a mix of both of those?

You are correct and I'm pretty sure you can choose either or at the end of the year, whichever works better.

 

[signswi]

If it is a mixed use (persona/business) you definitely need to keep a mileage log. One of the things I use that is very helpful is Expensify. Great program and has a free phone app. It will also download to Quick Books should you want it to. The mileage feature is nice because you don't actually have to track the mileage you just have to know where you went. You put a start and stop destination and it will google map the distance for you. However you should have an odometer start at the beginning of the year and a stop at the end of the year so you can tally the difference of personal/business use. Expensify is one of my top five most useful phone & web combo apps. Especially for free.

Agreed, small business is so much easier when you leverage modern software for just these types of purposes. In the past I would have said "don't bother tracking a mixed use vehicle, too much work for the payout" but with tools like Expensify most of the work is done for you. Cross platform automation = small business happiness.

 

[threeputt]

every vehicle I have is a write off. Lettered or not. Its used in business. I dont care if its wrapped or has a set of mags on it I would write it off and my cpa has for the past 15 years.

This is a Certified Public Accountant that has told you that?

By "writing it off" you mean that you take a deduction for the cost of everything associated with driving it? All of your vehicles?

Wow.