You Make the Call - June 26, 2025

Question: Edna and Stacy, who own Counting Cowgirls, LLC, purchased a 2025 Subaru Forester and "wrapped” it with a vinyl graphic to promote their accounting business. The question arose as to whether having the advertising on the vehicle makes business use of the vehicle 100%. Is 100% of the mileage for the wrapped vehicle deductible now that it is essentially a mobile billboard?

Answer: No, 100% of the mileage is not deductible just because of the vinyl graphic on the vehicle. Substantiation of business versus personal use must still be tracked even if the vehicle is fully wrapped with advertising. That means Edna and Stacy should track business use with one of several methods, including contemporaneous mileage logs, appointment books or delivery records, or a mileage application on the user’s smartphone. In other words, the advertising function does not convert all use of the vehicle to 100% deductible. However, a benefit still exists to the owners in that they may deduct the wrapping costs as a legitimate advertising expense under §162 in the year such costs were paid or incurred. Deduction costs can include the design, production and installation costs of the wrap as well as any replacement or removal costs due to wear.

If the vehicle is used 100% for business purposes with zero personal use, 100% of the car expenses may be deducted, regardless of the advertising graphic.