Attract new business and reduce your tax expense? It's a win-win with vehicle graphics!
Smart business owners and marketers alike are always mindful of ways to maximize their return on investment. Taking advantage of allowable deductions, like vehicle graphics that advertise your business, are like icing on the cake for maximizing those returns.
Are Vehicle Graphics Tax Deductible?
The short answer is definitely YES! That said, the IRS rules can be complicated so be sure to consult your tax professional before making your final assessment.
There are two types of deductions that are typically considered when looking at vehicle wraps and graphics. The first is allowable, the second is not.
1. Deductible: The cost of vehicle graphics used as advertising
Expenses for advertising your business are tax deductible. It's important to note that these must be ordinary and reasonable expenses for advertising. Some examples would be business cards, Yellow Pages ads, newspaper advertisements, TV and Radio ads costs, and costs for setting up your business website.
According to this IRS rule it is allowable to deduct the costs associated with designing, producing and installing your vehicle graphics.
2. Not Deductible: Non-Business (Personal) Mileage for vehicles with advertising graphics
According to a March, 2016 About Money article:
"You can deduct the cost of putting an advertisement for your business on your car (business or personal), but you can't deduct the cost of driving your car around town as an advertising expense. The IRS specifically discusses this subject, because it's misunderstood.
According to the IRS
"Putting display material that advertises your business on your car does not 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 cannot deduct your expenses for those uses."
Click here to see what Turbo Tax has to say on the same topic
Follow the Law and Maximize Your Allowable Deductions with Vehicle Graphics
The economics of vehicle graphics advertising is compelling, even before taking tax deductions. So consider the deductions you can take as icing on the cake! If you are ready to add vehicle graphics to your service or fleet vehicles, give us a call, we'll be happy to help you out. If you are looking to learn more, visit our Do More Than Drive Blog for helpful articles to help you make an assessment for your business.
These vehicle wrap failures can come with a very steep price. Get the straight facts on vehicle wrapping, contact Riveting Wraps at (425) 368-5007 or email us at email@example.com.