NAICS code: 532100
Car-sharing apps are becoming more popular among car owners as a way of earning extra cash and offsetting the costs of owning a car. This is a similar business model to Airbnb, except that instead of renting out your home, you can rent out your car. When it comes to tax reporting, you are also considered a small business owner as a peer-to-peer car owner. You can deduct business-related expenses, such as everyday auto expenses, from your tax return. You can take deductions based on your income and expenses, but you must follow certain rules and limitations.
A rental car – the last true mark of adulthood. Providing car rentals gives visitors, tourists, and people in a pinch a chance to enjoy some freedom for a short period of time.
Line finds the best write-offs for car rental companies to help you keep more of your hard-earned rental income. If you take advantage of these write-offs, you’ll be pleasantly surprised at how much your tax bill can be reduced. Take advantage of these savings before they’re gone!
We have put together a list of the most common write-offs for car rental providers that you can use to deduct your expenses.
Write it off using: Schedule C, Box 15
You can deduct the auto insurance premium on cars you rent out.
⚒️Repairs & maintenance
Write it off using: Schedule C, Box 9
You can write off what you pay for any car repairs and scheduled maintenance.
Write it off using: Schedule C, Box 23
State registration fees for the vehicles you rent out can be written off.
Write it off using: Schedule C, Box 13
You can deduct the depreciation of the car you rent out each year.
Write it off using: Schedule C, Box 27a
If you pay to park your car at a pickup location for renters, you can write this off.