Are Vehicle Wraps Tax Deductible?

Published by Bonnita Calhoun Comments Off on Are Vehicle Wraps Tax Deductible?

Did you know that vehicle wraps and graphics for West Palm Beach, FL, business owners may be tax deductible? You already know that these products have the power to enhance your company’s visibility among consumers, which increases the likelihood that passersby become customers. As a savvy business owner, you are also keeping a close eye on the bottom line. Can you write off the expenses associated with wraps?

Talk to the Experts

When you want to know everything you can learn about vehicle wraps and graphics, talk to our experts. That said, when you wish to discuss the intricacies of the tax code and particularly the way it applies to your specific business, contact a tax preparer or certified public accountant. With the legal caveat out of the way, we now feel comfortably to offer you some general advice on the tax deductibility of your vehicle advertising.

Are Vehicle Wraps Tax Deductible?

Is the wrap a bona fide deduction? Do magnets qualify? What about the lettering and graphics project you commissioned for your car last week?

• Advertising deductions. Speaking of magnetic signs, consider that these attach to your car as easily as to your company’s freezer or other magnetic surfaces. This lets them fall under a general marketing product category, which may make them tax deductible as an advertising expense. The same rules can apply for the window decals you display on your car.
• Missed opportunities. If you have your personal vehicle treated, you may miss out on a deduction. The problem here is that a personal vehicle’s use pattern does not change just because you had vinyl marketing messages applied to it. There may be different rules if you are the business’ sole proprietor and your personal vehicle doubles as your professional conveyance. This is certainly a topic to bring up with the tax accountant. A possible workaround is the installation of a short-term wrap that advertises a particular product or service during a special promotion.
• Vehicle wraps. For the company car or truck that you had treated with a full or partial wrap, there is a good chance that the product can become a business expense deduction. It is crucial that the product acts as an advertisement for your specific company and spells out your business information. In other words, installing a color-change wrap with a small company decal on the bumper will most likely not meet the tax code’s requirements.

Does the Investment Make Sense?

The tax code ambiguity leaves some entrepreneurs wondering if the investment in a wrap is indeed worth it. Consider the advantages that this marketing product brings to the table!

• Increase name recognition. Turn your company’s name into a household name. Expertly differentiate yourself from the competition simply by getting your name and slogan (or tagline) out among consumers.
• Enhance product awareness. Become known as the company that provides a popular product or service. When consumers connect your company’s name with a specific product, you succeed in growing the business that will fill this need when it arises.
• Position your brand. Compete effectively by positioning your brand advantageously. When your competitors use mobile marketing, you cannot afford to be the one company that does not. Contact our pros today to find out more about wraps and similar marketing products.

Ready to brand your business with vehicle wraps?

Categorised in: Fleet Graphics, Vehicle Graphics, Vehicle Wraps

This post was written by Bonnita Calhoun