June --
I want to know, if I hire an independent contractor to put my magnetic signs on her car can she deduct the full mileage she drives with the sign on the car? She is an independent contractor and I am paying her to use the space on her car to promote my business. I know I can't deduct the full mileage for promoting myself, but can an independent contractor?
Florida Realtor
You may deduct your costs for the sign and whatever you pay for the service of the independent contractor. But, there is no business deduction for the person who owns the car and has the sign, or even permanent printing, on the car. There is a deduction for the costs of business miles only -- for instance, taking the car to the sign painter to have the work done.
Think about it: If you could deduct all your auto expenses just by placing a sign on your car, well, in this ever-increasing world of self-employeds we'd see a lot of moving billboards on the road.
And, as always, read the book that can simplify your tax and financial life, AND save you money!SELF-EMPLOYED TAX SOLUTIONS .
-- June
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4 comments:
Hi June,
Just found your website for the first time. Having been self-employed for over 40 years, I found your advice right on target. I'm a CFP and have several clients who are self employed. I'll be suggesting they read your advice in addition to what their CPA tells them.
Thank you, CFP. I really appreciate your letting me know.
Best,
June
PS: For the unfamiliar, A CFP is a Certified Financial Planner.
Hi June. I am so happy to have stumbled upon your site. I am a newly self-employed Independent Distributor for Premier Designs Jewelry. What advice do you have for me in keeping mileage? I often take care of business on a daily basis. Like running to the supply stores, the bank and things like that.
Thanks,
Tiffany Henry
Oak Lawn, IL
Hello Tiffany,
I suggest you read all my posts relating to auto expense. See the category "Expenses -- Auto" in the left column.
A complete and organized explanation of auto expense is available in my book Self-employed Tax Solutions
-- June
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