Legal Question in Tax Law in California

If I work on an automotive company's advertising account (at an agency) can I lease that brand's vehicle and deduct the payments (or any portion of the lease payments)?

For example, if I work on Honda's car account at their advertising agency, can I lease an Accord and deduct the lease payments (or a portion of them)?


Asked on 3/29/10, 10:37 am

1 Answer from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Sen. Al Franken, when he was on Saturday Night Live, did a skit in 1980 in which he lampooned business-expense tax deductions (sorry, can't find video):

"You see, since I'm a comedian, almost anything I spend can be justified as a business expense. For example, this sports jacket. See, I'm wearing it on TV, so it's a business expense. You see ... these pants here. Now deductible, because they're on TV. OK, this watch. It's an expensive watch, it's now deductible. OK ... This portable tape deck. It's got everything ... now deductible. Now, this Christmas, I went to Hawaii ... and here's a picture of me in Hawaii, taken by some friends I met there ... OK, now the Hawaii trip is deductible."

I later wrote to Franken, identifying myself as a lawyer, asking whether he had been successful in writing off his Hawaii trip. I didn't get an answer, but shortly thereafter (while Franken was still credited as a writer) they began the "Caveman Lawyer" sketches. Later I received a pitch for a campaign contribution.

To answer your question, yes. I'm amazed that Honda doesn't lend your agency some cars so your creative types can drive them.

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Answered on 4/03/10, 11:45 am


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