09 Feb Vehicle Wraps Can Save You Money
The 2016 Tax Season if officially upon us… Vehicle wraps are an ideal form of advertising for so many contractors, food trucks, fleet owners, and businesses. But, could they also be a tax deduction?! Check out this article to see if vehicle wraps can help you get a jump on finding deductions for your 2017 Tax Season!
According to the Internal Revenue Services (IRS) there are certain deductions that are permissible when driving a company car or a car that is for business purposes. Items like magnetic signs, stickers, placards or even custom license plates are allowed deductions. The actual cost of the signs, stickers, etc. is considered a business expense. However, having these items on the car does not make the cost of car itself a deductible expense.
Vehicle wraps fall under that same category. Vehicle wraps are considered a deduction, but having a vehicle wrapped car does not mean that other expenses like mileage or maintenance can be deduction.
As always, there are exceptions to this general principle. A car that clearly used for business purposes/ a company car is eligible for deductions. For example, wrapped plumbing van or construction truck is eligible for deductions because the car is used to drive to the homes of clients, trips to the hardware store for equipment, etc. Realtors, florists, shuttle services, and maid services can also claim these same deductions. In some cases, if the vehicle wrap is removed the car may no longer qualify for certain company car deductions.
Fleet vehicles fall under a different classification entirely. Small fleets, comprised of less than five vehicles, can have deductions for either mileage of actual expenses. The IRS sets a particular multiplier per mile driven. In 2012, it was $0.55.5 per mile driven. Or, for actual expenses you tally gas, tolls, parking, repairs, etc. to reach a total amount. Fleets with more than 5 vehicles are another beast entirely with a very long and complicated set of rules.
There are specific times when mileage deductions, actual expense deductions, or fleet deductions should be utilized. As we all know, the IRS seems to relish in devising the most complicated set of rules possible. Hopefully our brief guide to the types of deductions you can expect was illuminating.
With over 50 years of combined experience in graphics and marketing, the Full Sail Graphics team is confident that we will deliver quality graphics on time and on budget. If you’re looking for a tax deductible driving billboard, please feel free to give us a call at (714) 274-6706 or visit our website at //fullsailgraphics.com.