Are These Car Expenses Deductible?

"I have my company logo on my car.  Someone told me I can deduct the car as a business advertising expense."

"Can I deduct expenses for going back and forth from my home to my office?"

"If I can make business phone calls when I'm commuting, can I deduct the car expenses?"

"If I use my car to take business materials, tools and equipment back and forth from home to work, can I deduct these car expenses?"

Small business owners have lots of questions about tax deductions for business use of cars and there is a lot of misinformation out there. These are some of the most common questions.  If you have other questions, comment on this post or in the Forum.

Business Vehicles as Advertising
You can certainly deduct the cost of putting the logo on the car as an advertising expense, but you can't deduct the miles you drive around as "advertising." The IRS says, "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."

Commuting Expenses are Not Deductible
The time you spend driving back and forth from your home to your business is considered "commuting," and it is not deductible as a business expense.  Consider it this way - everyone needs to get to work, employees and business owners alike, so this expense is not part of your business.

Use of Car While Commuting
If you use your personal car to transport materials, supplies, or equipment back and forth from home to office, the IRS says this doesn't make the car expenses deductible. Even if you use commuting time to talk on your cell phone about business matters, the car costs are still not deductible.  Of course, you can deduct the cost of the cell phone and any additional charges.

Even If the Business Owns the Car
If your business has purchased the car, you still must separate out personal use of that car for tax deduction purposes.  Only the business use of the car can be deducted.

For More Information:
Records to Keep for Car/Truck Expenses
Standard Mileage Deduction vs. Actual Mileage Expenses

Disclaimer: I am not a tax professional or Enrolled Agent, and my purpose in presenting this discussion is to provide general information and give you some background so you can talk about this subject with your tax professional.