Can I Write This Off?

Can I write off business use of a bicycle?

TL;DR

The business use of a bicycle can be deductible if it is used primarily for business purposes.

Detailed Answer

To deduct the business use of a bicycle, it must be used primarily for business activities. This means that the bicycle should be used for tasks such as traveling to meet clients, making deliveries, or commuting between business locations. Personal use of the bicycle should be minimal. The deduction can include expenses such as depreciation, repairs, and maintenance, but must be prorated based on the percentage of business use.

Where to Put It on the Tax Form

Schedule C (Form 1040), Part II, Line 9 (Car and truck expenses) or Line 27a (Other expenses)

Real World Example

A freelance graphic designer uses a bicycle to travel to client meetings and deliver design proofs within the city. They track the mileage and percentage of business use to calculate the deductible portion of bicycle-related expenses.

Calculation Required

A calculation is required for this deduction.

Calculate the percentage of business use by dividing the business miles by total miles traveled on the bicycle. Apply this percentage to the total bicycle expenses to determine the deductible amount.

Audit Risk & Documentation Tips

Maintain a detailed log of business miles traveled, including dates, destinations, and purposes of trips. Keep receipts for all bicycle-related expenses and document the method used to calculate the business use percentage. This documentation can help substantiate the deduction in case of an audit.

IRS Reference

IRS Publication 463 (Travel, Gift, and Car Expenses) and IRS Publication 535 (Business Expenses)

Relevant Industries

FreelancersSmall BusinessDelivery ServicesConsultants

Popular Related Pages

Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 7, 2025

Back to Search