There are many reasons to rent a car, with business trips, vacations and moving at the top of the list. For those people that rent cars on vacation, the idea of deducting a luxury like that seems too outlandish and in fact, most people never use rental cars as a tax deduction even when they’re used for business trips and moving or relocation.

However, according the IRS, rental cars that are used for business or for moving can both be claimed on your taxes with the use of the proper tax form(s). Any expenses from your business trip that aren’t covered by a company credit card or that you are not reimbursed for qualify as do all expenses, less meals, that are required for you to move or relocate for a new job.

As car rentals can be one of the most expensive luxuries of a business trip being able to claim it on your taxes is something that can prove to be very useful. The expenses that most people incur while on a business trip can actually override any profit they would have made for those days, had they not gone. People also seem to think that they just have to bite the bullet when it comes to relocation costs that their employer doesn’t cover, which often times add up to thousands of dollars.

This makes it that much more important for people to understand that they can get the money back. Following the advice of your tax advisor could mean that you get the remaining fifty percent of the costs that you incurred for moving or business trips that your employer didn’t cover.