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 bya tax professionalThis content has been reviewed by an Enrolled Agent (EA) with the IRS — the highest credential awarded by the agency. Enrolled Agents are empowered to represent all taxpayers before the IRS, on all types of tax-related matters. Accountants who earn this certification have passed a comprehensive three-part exam on individual and business tax returns. To maintain EA status, they must stay up to date in the field by completing 72 hours of continuing education every three years.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.
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.
Oil changes, repairs, and regular checkups are all tax-deductible if you drive for work.
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!
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, all meals are tax-deductible. Even takeout!
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.
You can write off up to $2,500 for individual repairs to your property.
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.
Your Comcast bill is a tax write-off. You need internet to do your job!
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