JohnB5677
Expert Alumni

Deductions & credits

No, You do not have to claim the car on your taxes, and the loan interest is not deductible.

 

However sales tax could be deductible if you have sufficient Itemize deductions to make it worthwhile.  If you are single you will get $12,400, $24,800 if married, as a Standard deduction.  You would have to exceed that amount in Mortgage interest, Property Taxes, Medical expenses and Charitable giving to make it worthwhile to make the change.

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