You should consult with your personal income tax advisor to determine whether you can deduct car rental costs on your income tax. If you rent a car strictly for pleasure, such as for use during a three week vacation in and around Salt Lake City, then your rental car expenses are not tax deductible. However, if you combine your vacation with a legitimate business purpose such as a professional conference or a series of meetings with potential clients, then you can deduct your car rental expenses as a cost of running a business. If you do run your own business and rent a car for purposes other than commuting to and from your home, then its use in your business is a deductible expense.

If you do not run your own business, there are two situations in which the cost of a rental car might be deductible: moving expenses and medical expenses. However, it is not clear whether you are limited to the standard 24 cents per mile (as of the 2009 tax year) deduction, or whether you can deduct rental car fees, instead. As with most complex tax issues, you should consult with your tax advisor before you decide how to handle car rental expenses on your income tax return.