SusanY1
Expert Alumni

Deductions & credits

If you are calculating your business vehicle expense using the standard mileage rate, there is no additional deduction for intererst paid.  If you are deducting actual expenses, then business use percentage of the interest paid is an expense in the year that it is paid.  If the loan term extended beyond a year, the interest must be amortized across the life of the loan.   (This assumes also that the vehicle was used for business in that year.) 

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