Putting Sign or Vinyl Wrapping on Your Car

A lot of business owners think it will be good proof to IRS that their cars are for business use as they wrap the vinyl to make the cars as business cars.

Also, they think 100% tax deductible should be granted as they promote their businesses all the time with their cars’signs.

Is it true ?

The answer is NO.

Of course, the cost of wrapping the vinyl or printing the signs are all tax deductible as promotion expenses. However, these promotional print won’t make your car to business car automatically.

To define whether your car is business car or not, the mileage rule does not change even though you wrap your car.

In other words, the percentage of business mileages to the total mileages is  the way to prorate the business portion of your vehicle.