If you use your car for business, you can deduct part of your interest paid on your car loan in the self-employment income section.
If you aren't self-employed, only the sales tax paid on a new vehicle is deductible. In order to get the deduction, you have to itemize your deductions and you must choose to deduct sales tax instead of state income tax. If you live in a state with state income tax, you are usually better off choosing the income tax.
If you think you may benefit, click here to learn more about this deduction.
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