📋Business Expenses

Are Tires Tax Deductible?

Q: How do I categorize Tires Tax Deductible in QuickBooks?

In QuickBooks Online, categorize this under "> **Behind on your bookkeeping?** Ketchup catches up your QuickBooks in 3–7 business days — starting". Report on Line 9.

⚠️ Partially / It Depends

🔄 It Depends — Tires are deductible for the business-use percentage of your vehicle when using the actual expense method.

IRS Reference: IRS Publication 463

QBO Category: > **Behind on your bookkeeping?** Ketchup catches up your QuickBooks in 3–7 business days — starting · Line 9

Quick Answer: 🔄 It Depends — Tires are deductible for the business-use percentage of your vehicle when using the actual expense method.

The Short Answer

Tires purchased for a business vehicle are deductible at your business-use percentage. If your vehicle is 70% business use, 70% of tire costs are deductible. This applies only when using the actual expense method for vehicle deductions — tire costs are included in the standard mileage rate.

IRS Rules for Deducting Tires

Under IRS Publication 463, tires are classified as vehicle maintenance and repairs when they're routine replacements, or as improvements if they significantly enhance the vehicle. Most tire purchases are considered maintenance and are currently deductible.

Actual expense method requirements:

Must track all vehicle expenses rather than using standard mileage rate
Only business-use percentage is deductible
Include mounting, balancing, alignment, and disposal fees
Both new tires and repairs (patches, plugs) qualify

Timing: Tires are typically expensed in the year purchased. However, if you buy premium tires that significantly exceed normal replacement cost, the IRS might require capitalizing and depreciating the excess over the vehicle's remaining useful life.

How Much Can You Deduct?

Tire Purchase	Cost	Business Use %	Deductible Amount
--------------	------	---------------	------------------
Standard tire replacement (4 tires)	$400–$800	80%	$320–$640
Premium/performance tires	$800–$1,500	80%	$640–$1,200
Single tire replacement	$100–$300	80%	$80–$240
Mounting, balancing, alignment	$50–$150	80%	$40–$120

Most vehicles need new tires every 25,000–50,000 miles, so annual tire deductions vary widely based on driving patterns.

How to Categorize in QuickBooks

QBO Category: Car & Truck Expenses
Schedule C Line: Line 9 (Car and truck expenses)
Tip: Tire purchases are typically large, infrequent expenses. When you buy tires, note the vehicle mileage and date — it helps track your vehicle's maintenance history.

Common Mistakes to Avoid

Deducting tires while using standard mileage. The 67¢/mile rate includes all vehicle costs. Don't double-dip with separate tire deductions.
Claiming 100% for mixed-use vehicles. Apply your actual business-use percentage to tire costs unless the vehicle is exclusively for business.
Forgetting installation costs. Mounting, balancing, valve stems, alignment, and tire disposal fees are part of the deductible expense.

Record-Keeping Requirements

Keep tire purchase receipts showing date, vendor, tire specifications, and total cost including installation. Maintain a mileage log to support your business-use percentage. Note the vehicle's odometer reading when tires are installed. Retain records for at least 3 years from filing.