I often get asked by clients, ‘if I have business signwriting put onto my motor vehicle, does this mean I can claim a tax deduction for all of my vehicle costs?’ …Wouldn’t that be nice, if you could put a small amount of advertising on your car and claim the cost of driving your kids to school or picking up the groceries! Unfortunately, the tax man doesn’t agree.
If you have business advertising put onto your motor vehicle, the actual cost of the advertising (signwriting) is tax deductible as it is directly related to deriving business income – the same as a sign out the front of a business premises. However, to claim any deduction for the motor vehicle running costs the normal rules for motor vehicle deductibility apply, where effectively it is the business nature of each trip that determines the amount that can be claimed.
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