Hi shareintl, thanks for posting an event question.
Under the two distinctive scenarios:
- New car driving experience, initial cash down payment, sales tax and expenses, auto loan interest payments vs.
- driving an older car, no major cash outflow but higher repair and maintenance.
You indicated that you main income is from W-2 wages. Un-reimbursed employee business expenses/job costs are currently suspended in Itemized Deductions (Sch A) through 2025. The portion that is deductible on your side hustle and ministry (Schedule C) is limited.
Consider $65.5 cents per mile for business purposes, you receive same auto standard mileage deduction with the old car without cash outlay. With the new car, you can use actual expenses method with potential larger deduction (due to auto depreciation) but with cash outlay and interest expense pro-rated based on the business usage.
Hope the above helps. Thank you.
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