SusanY1
Expert Alumni

Deductions & credits

There is no requirement that interest is only deductible when loans are furnished by a licensed lender or finance company.   

The lender may have a requirement to report the interest as interest income, but whether or not it is deductible depends on the vehicle's use.  Is this a business use or personal use only vehicle?  Or some combination of the two? 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"