Your business use of any vehicle, no matter who owns it, is deductible. You can deduct the interest portion of the monthly payments you made. You have a choice between using the actual expenses method or the standard mileage rate.
If you do not own or lease the car, you have to use the ''actual expense'' method because of the depreciation that is factored into the standard mileage rate. However, vehicle loan interest is deductible no matter which method you choose.
Vehicle Deductions
