Unlike some equipment purchases, with a few exceptions, marketing, and advertising investments are 100% tax deductible. You can write off every dollar that you invest in marketing with a full or partial vehicle wrap. So from that perspective, investing in tax-deductible vehicle wraps as a write-off certainly makes good sense, right?
Examples of tax-deductible vehicle wraps
Plumber/Contractor – for example, a plumbing contractor who is the sole proprietor purchases a van wrap for one company van. He would be able to deduct the full cost of the vehicle wrap. Also, he could deduct the vehicle maintenance, mileage and vehicle payment or lease payments. This deduction is because he uses the van to drive to the homes or businesses of his customers and provides services to clients. These deductions also apply to a Realtors, HVAC companies, florists and shuttle services.
Food Trucks – A food truck wrap is one of the most important pieces of marketing your business. It defines the food trucks identity; making the brand recognizable at a glance. Wrapping the truck in colorful graphics is a creative way to express that the food you serve is not only delicious but unique. Owners of the food truck can deduct the wrap as an advertising expense.
Real Estate Agents – Real estate agents and insurance agents using a vehicle wrap to advertise can deduct the cost of the vehicle wrap on their tax return, but not expenses like fuel, mileage, and maintenance—especially if the car is parked stationary at their law office most of the day.
Short-Term Vehicle Wraps – People can fully deduct the cost of short-term vehicle wraps such as product promotions or a political candidacy. They may also be able to deduct the vehicles operating expenses for the life of the vehicle wrap.
Why not contact Tier 1 Graphics to discuss what we can do for your business.