Is the maintenance cost of a business-related vehicle deductible?

The maintenance cost of a business-related vehicle is deductible, particularly when the vehicle is used strictly for business purposes. This means if a vehicle is devoted entirely to business activities, all associated maintenance costs—such as oil changes, tire replacements, and general repairs—can be deducted as business expenses. This deduction is an essential aspect of tax legislation that helps businesses offset the costs incurred in the operation of their vehicles used for business activities.

When a vehicle is used for both personal and business reasons, the deductibility becomes more complex, as only the portion of expenses attributable to business use can typically be deducted. This highlights the importance of accurately tracking business versus personal mileage to substantiate the claims made on tax returns.

The other choices do not accommodate the criteria for deductibility correctly. Personal costs are indeed not deductible, and maintenance costs can still apply to owned vehicles, not just leased ones. Additionally, while there may be specific requirements and regulations to follow, the fundamental principle is clear for vehicles used exclusively for business.