Interest on vehicle loans is not deductible in and of itself.
However, if the vehicle was used for a business purpose, you may be able to deduct some or all of the cost against your self-employment income. You would also have to claim actual vehicle expenses rather than the standard mileage rate for your vehicle expenses.
Follow these directions:
- Down the left side, click Federal.
- Click on Income & Expenses.
- Under Your income, click on Edit/Add to the right of Self-employment income.
- Click on Edit to the right of the business name.
- To the right of the Vehicle expenses, click Edit.
- To the right of the vehicle, click Edit.
- At the page Based on the miles you drove…., choose I’ll enter my actual expenses….
- Follow through the screens and determine whether actual vehicle expense or the standard mileage rate is a better option for your tax return.
See this help.
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