Content creators have long used flashy, shiny, and expensive objects to gain instant credibility to their so-called claims. The latest trick in the book is to create content in their G-Wagon or Lambo cuising down the highway. If that wasn’t enough… there’s always the high-rollers that take it a step further and use either a private eet or a yatch to stand out in this increasingly competitive market.
To make matters worse, many of the tax-gurus out there pose one of the flashiest questions in today’s entrepreneurial circles — especially among creators, influencers, and content-driven businesses:
Can you deduct a car if you bought it just to make content?
The answer? For most people, no. But like most things in tax strategy, the details matter. So let’s break it down — not with hype or hashtags — but with the truth.
Substance Over Hype
In the world of tax law, there’s something called the substance-over-form doctrine. In plain English, it means the IRS doesn’t care what label you slap on something. It cares about what’s really happening under the hood. So if you buy a car and claim it’s for business, but you’re actually using it to run errands, pick up your kids, or head out to Sunday brunch… the IRS sees that too.
It doesn’t matter if your Instagram bio says “entrepreneur” or your YouTube banner features the car. If you’re not using the vehicle primarily and substantially for business, it’s not a business vehicle. No matter what the invoice says.
The “Content” Excuse — And Why It Usually Fails
Just because you’re filming with the car doesn’t mean it’s a tax deduction. The IRS evaluates how often and how directly the asset is tied to revenue-generating activity. If you make content occasionally and happen to feature the car, that’s not enough. You’d have to show that the car is a core part of the business and not just window dressing.
Let’s say you’re in the business of reviewing vehicles, running a luxury rental operation with a full media arm, or producing auto commercials — that’s a different story. In that case, the car might qualify. We have to be real here… there are several channels on YouTube that focus solely on driving, testing, and evaluating luxury cars. Even in these cases, taking it to far can have serious consequences.
Why you may ask? Even in these, what we would see as clear-cut cases, the IRS will still asks a different type question:
“Was it necessary?”
Because a business deduction also has to be ordinary in your industry and necessary to your operations.
A $200,000 exotic car just for a few videos doesn’t usually meet that bar. The IRS will ask (and rightfully so) why you didn’t just rent the car for the weekend and call it a day.
Renting vs. Owning — The Practical Tax Angle
This is where strategy separates from vanity. You might think that buying the car lets you depreciate the asset and take a big deduction. But if your business doesn’t really need that car, and the cost is excessive compared to the benefit, you’re in dangerous territory.
Renting a vehicle for $2,000 to shoot some high-production content is a legitimate and much safer business expense. Buying it outright, claiming a full deduction, and then using it personally is a fast track to an audit — and a tax bill you don’t want.
Let’s also remember: an expense must be reasonable in amount. That’s written directly into Section 162 of the Internal Revenue Code. So, even if you could justify some business use, the size of the deduction still has to make sense. If you run a small digital agency and buy a Rolls Royce “for marketing,” you’re probably asking for trouble.
What About the “It’s My Business!” Argument?
Some entrepreneurs will argue, “But my business is content. I film my life. That car is the brand.” That argument gets made a lot, especially by influencers and lifestyle creators.
Here’s the problem: the IRS doesn’t let you claim deductions for personal living expenses just because you document them. If you go to the grocery store and film it for a vlog, your groceries don’t suddenly become deductible. The same logic applies here.
Unless the car is used exclusively in a business that is structured, profitable, and proven to rely on that vehicle — not just for one-off content, but as a key tool — the deduction doesn’t hold water.
The OB3 Loophole — With a Big Asterisk
Now, let’s talk about what’s technically allowed — thanks to the recently passed OB3 legislation. Under this new tax law, vehicles that meet certain qualifications: like weighing over 6,000 pounds GVW (Gross Vehicle Weight) are now eligible for 100% bonus depreciation through 2030.
If depreciation seems tricky, I’ve already written an article about it that you can find HERE.
Yes, that means a business could buy a $200,000 Mercedes G-Wagon or Lamborghini Urus and potentially write the entire thing off in the first year. This sounds like a dream come true. But that dream becomes a nightmare if you don’t meet the stricter usage requirements. The IRS will absolutely ask:
Was this car actually used in the business? And if so, how much of it was used to produce income?
This is where most people go wrong. They assume that because the law allows for full depreciation, they can deduct the entire cost — even if the vehicle was only used 20% for legitimate business. The IRS isn’t stupid. In these cases, the deduction is often partially disallowed. And even worse, the remaining amount is reclassified as ordinary income. That’s right. You not only lose the write-off, you also get taxed on the very amount you tried to deduct. Ouch.
The Problem with “Revenue Influence”
Another trap people fall into is justifying the car as a revenue-producing asset.
“But I can show that videos with the car get more views,”
they say. Sure, that data might help your case — but only slightly. The IRS still maintains that content is driven primarily by the creator, not the props. In tax court, this argument has been made before, and time and again the IRS wins.
Why? Because the vehicle, while helpful, isn’t necessary to the business. It’s not integral to generating income. And remember, “necessary” is the standard for deduction.
In other words… you are the product, not the car. Hence, you’d better be careful claiming the car is the business. In many cases, the IRS has ruled that even luxury items used in content creation lack a strong enough connection to justify large-scale deductions. Revenue might increase with a nice car on camera, but that bump doesn’t necessarily justify a six-figure tax write-off.
Again… the result is reclassification, penalties, and an expensive reminder that your acocuntant isn’t your content manager.
The IRS Checklist for Bonus Depreciation
If you’re still convinced this strategy fits your business, then at the very least, make sure the vehicle qualifies. Bonus depreciation under OB3 requires that the car have a gross vehicle weight rating (GVWR) of over 6,000 pounds, which includes many luxury SUVs like the G-Wagon, Escalade, and Urus.
If you’d like to learn more about Bonus Depreciation, a previous article I wrote about it can be accessed HERE.
The vehicle also must be purchased and placed in service during the tax year in which you’re claiming the deduction, and (this part is non-negotiable) used more than 50% for business purposes. That’s not just about intention. You’ll need documentation, logs, and credible usage reports to back it up. No, a few Instagram reels won’t cut it.
If you lease it, none of this applies. If you finance it, the deduction is still limited to actual business usage. And if you’re driving it around town without any sort of business tracking system, don’t expect your deduction to survive an audit.
The Bottom Line
Buying a car strictly for content rarely qualifies as a clean deduction. If your car is doing double duty, appearing in content but also being driven for personal use, it’s even riskier. The IRS sees right through that.
If your business truly centers around automotive content and that car is the star of the show (meaning your income is directly tied to its use, and you can back it up with mileage logs, contracts, and receipts) you may have a case. But for most, renting for the few days you need it is not only cheaper, it’s smarter.
Think Like a Tax Strategist, Not a Trend Chaser
Good tax strategy is about alignment — making sure your expenses, your business model, and your operations all work in harmony. When they do, deductions are powerful. When they don’t, they’re red flags.
At Weston Tax Associates, we don’t just answer tax questions. We help business owners like you design smarter strategies that maximize cash flow, reduce audit risk, and build legacy wealth.
If you’re wondering whether a flashy business purchase will fly with the IRS, let’s have a real conversation before you swipe the card. You can book your tax strategy session here.
Welcome to the New Age of Accounting. Let’s begin.
Chris is the Managing Partner at Weston Tax Associates, a best-selling author, and a renowned tax strategist. With over 20 years of expertise in tax and corporate finance, he simplifies complex tax concepts into actionable strategies that drive business growth. Originally from Sweden, he now lives in Florida with his wife and two sons.
