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Where do I deduct AAA dues in the business schedule C?

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June 4, 2019
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Best answer by PeterM

As long as you are claiming your auto expenses using your actual expenses rather than the standard mileage rate, then you may deduct the percentage of the cost of your AAA membership as it relates to the business use of your car (Line 9 of the Schedule C).

In other words if you use your car 100% for business then you may deduct the entire cost. If you use your car 50% for business, then you may deduct 50% of the membership cost.

P

PeterMAnswer

Employee

As long as you are claiming your auto expenses using your actual expenses rather than the standard mileage rate, then you may deduct the percentage of the cost of your AAA membership as it relates to the business use of your car (Line 9 of the Schedule C).

In other words if you use your car 100% for business then you may deduct the entire cost. If you use your car 50% for business, then you may deduct 50% of the membership cost.

Z

ZiggyZ

Actually, AAA Membership dues are not considered an Auto Expense, as they have nothing to do with or effect the vehicles depreciation, upkeep and maintenance.

As such, since this expense isn't required to be entered as a vehicle expense, you could enter your AAA Membership dues as a Misc Expense on Schedule-C and you can still take the standard mileage deduction, if you're not claiming actual expenses.

K

KHL9007

I can't answer directly about the tax deduction possibilities, but I agree that it would likely be a miscellaneous expense rather than an auto expense. As a former AAA employee, I can say that this is often one of the most misunderstood things about the AAA membership. It actually covers the member, not the vehicle. A road service call can be requested for any vehicle, even if not owned by the member. We frequently had to clarify this when members would call the office to notify us of a change of car ownership or a new car purchase; they were always surprised to learn that it didn't matter what vehicle they were in or with if road service was needed. For whatever it's worth!