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Yes, according to the Internal Revenue Service, if the primary purpose of the rental car is for business, This rule applies whether the rental car is used for travel or for day-to-day business activities. If the car is used only for business purposes then 100 percent of the rental fee is a legitimate tax deduction. If the rental car is used for any personal purposes, the percentage of the rental car cost associated with the personal use must be subtracted from the amount used as a business tax deduction.
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