It is almost a cliché to sigh in disdain when tax season rolls around. Very few of us find joy in filling out the necessary paperwork, tracking down loose receipts and jumping through all other fiery hoops necessary to fulfill your responsibility as a tax-paying citizen of this country. In completing these forms, many unfortunately look for the path of least resistance–anything to get them done and sent to the IRS as quickly as possible. In doing so, however, many business owners may miss out on money-saving tax deductions. When thinking of common business tax deductions, we think of the likes of life insurance premiums and commute costs, but what about the products our business provides? Are car signs tax deductible? By and large, car magnets, stickers, wraps and other signage on your vehicle can be tax deductible. However, deductions may vary depending on how your vehicle is used. Though speaking to an accountant is suggested in order to ascertain what costs are tax deductible, some common exemptions are included for:
- Temporary Signage: If your car utilizes temporary wraps or signage for a special or sale, for instance, the cost of the signage is often tax deductible and you may be able to deduct some of the cost of vehicle operation as long as this signage is present.
- Designated Delivery Vehicles: If you have a vehicle that is designated as a company car or delivery vehicle (meant specifically for business usage), both the cost of the signage and most operating and maintenance costs, possibly even payments on the vehicle, could be tax deductible.
- Vehicles as Signs: Though there are major benefits to car signs for the likes of food delivery and mobile maid services, some businesses choose to wrap a vehicle that is not intrinsic to their business operations. If a vehicle utilizes car signs or wraps, the signage itself is often tax deductible but the costs associated with the vehicle are not. This is because, outside of the signage, the vehicle is not associated with business operations and is, therefore, not eligible.