19 Tax Write-Offs for Car Rental Providers
NAICS business codeYour NAICS business code is a six-digit string of numbers that shows the type of work your business does. NAICS stands for North American Industry Classification System. When you do your taxes, you'll enter it in Box B of your Schedule C.532100
Reviewed bySabrina Wiechart, CPASabrina is a Certified Public Accountant (CPA) with over 15 years of experience in tax preparation, planning, and S-Corp compliance. She holds a Master’s in Accounting and specializes in helping self-employed individuals make smart tax decisions. Sabrina is passionate about simplifying the S-Corp process and making sure every client keeps more of what they earn.Ah, renting a car — the last true marker of adulthood. As a car rental provider, you provide temporary freedom to visitors, tourists, and people caught in a clutch. But who’s got your back when tax time comes?
At Keeper, we help keep more of your hard-earned rental income by finding all the best write-offs for car rental providers. Take these write-offs for a spin, and you’ll be surprised how much lower your tax bill can be. Don’t let these savings drive past you!
Write off what you pay for any car repairs and scheduled maintenance.
State registration fees for the vehicles you rent out can be written off.
If you pay to park your car at a pickup location for renters, you can write this off.
Car cleaning services to keep your vehicle looking nice and presentable are deductible.
The cut Stripe, PayPal, Square or your invoicing platform takes on each payment is a write-off.
Roadside assistance or towing coverage for your fleet is deductible when it isn't already bundled into your insurance.
Trackers, dash cams and telematics used to monitor vehicles are deductible supplies. Costlier systems get depreciated on Box 13.
If you drive for work ...
Working as a car rental provider might mean driving your own car around town — perhaps to meet with a supplier, mechanic, or detailer. Luckily, you can write off a portion of the money you spend on your car. The amount you can claim is tied to the percentage of time you use it for work.
Parking for a meeting downtown, or any other work trip, is tax-deductible!
A toll while driving to or from a work destination is tax-deductible!
If you buy a new car, you can write off part of the cost every year for five years.
Flashlights, tire iron, duct tape, and other tools you may need in your vehicle are deductible.
Car insurance monthly fees, registration, even roadside assistance are partially deductible — if you use the actual expense method. The standard mileage rate already covers them.
Oil changes, repairs, and regular checkups are deductible if you use the actual expense method. Take the standard mileage rate instead and they're already baked into your per-mile deduction.
If you discuss work at a restaurant ...
If you meet with a potential client for lunch to try and secure a deal, the IRS views this as a business meal, and you can claim the cost on your taxes.
Similarly, the cost of grabbing a bite or drink with mechanics, car salespeople, or fellow car rental providers can be written off.
If you discuss work with a coworker, mentor, client, or prospective client, it's a write-off — 50% of the tab.
If you leave town for work ...
Heading to an out-of-town industry conference or workshop specifically for car rental providers? Go ahead and write off your travel expenses.
Planes, trains, and car rentals are all work-related travel costs that can be written off.
When you travel for work, lodging expenses such as hotel rooms or Airbnb are write-offs.
When you're traveling for work, your meals are 50% deductible — takeout included. (Long-haul truck drivers subject to DOT hours-of-service rules can deduct 80%.)
If you work from home ...
If you work from home, on client development or managing paperwork and finances, for example, the IRS allows you to claim a portion of your home office expenses — things like a new desk or a portion of your property insurance.
A desk, chairs, lamps, and other home office necessities are all tax write-offs. Anything over about $2,500 gets depreciated on Form 4562 instead of written off all at once.
Repairs just for your home office are 100% deductible. Repairs to the rest of your home count too, prorated by your business-use percentage on Form 8829.
Gotta keep the lights on in your home office! A portion of your electricity bill counts.
Whether it's rental or homeowners insurance, you can write off a portion through your home office deduction.
It'd be hard to work in an office without running water, huh? Your water bill counts.
You need internet to do your job! If you claim a home office, deduct it prorated on Form 8829 along with your other utilities. Internet you pay for on the road, purely for work, is 100% deductible.
You may also enjoy learning about ...
Ultimate Guide to Car Tax Deductions and Mileage
If your freelancing, 1099 contracting, or small business involves driving, then you can claim car-related tax write-offs. Here's how to save on your car expenses at tax time — and everything you can deduct.
By Krislyn Chan
How To Depreciate Your Car on Your Taxes
Is Home Insurance Tax-Deductible?
How To File (and Save Money on) Your Turo Taxes
The Last Schedule C Guide You'll Ever Need
How To File Your Self-Employment Taxes in 7 Easy Steps
Track and claim every eligible deduction with Keeper
Keeper scans your accounts for write-offs and files your return — with tax pros reviewing every one.
Try it free