Can I Deduct Rental Car Costs on My Income Tax?

Filed under: Orlando Airport Car Rental - 18 Mar 2010  | Spread the word !

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Orlando is a wonderful city to visit. This Florida born city is a place where many people flock to from all over no matter what time of year. The weather is perfect and there are so many things to do. If you are looking at going to the sandy beaches of this city you are in for a special treat. There are so many things to do in Orlando in your airport car rental whether you are there on business or strictly a vacation. You may be wondering if you can deduct your car on your taxes.

When it comes to deducting rental car costs on your income tax you have to be very careful because it is a very gray line. 2 things that you need to remember. Work related is a “yes”, pleasure is a strict “no”. Attempting to file a deduction for a rental car on your taxes after using it on a vacation can really get you into a lot of trouble with the IRS. You better believe that if you get flagged you will not like to consequences. In other words you will be audited!

Now if you had your rental car due to your job on official business then it is quite apparent that you may need to deduct the costs on your income tax, especially if you came out of pocket. The most important thing is that you keep your receipts handy and make sure that you are prepared to fill out the 3903 form. Also make sure that you have all of your mileage tracked somewhere because the IRS will need to know this. By having all of your ducks in a row you should be able to deduct these expenses on your taxes will no problems.

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