No, you cannot expense car payments. But you can take deductions that may be even better.
You have two choices when reporting vehicle expenses: You can report actual expenses, or you can take the Standard Mileage Rate.
If you are reporting actual expenses, when you enter asset information about your car, you list the full purchase price, not the amount you paid to date. The depreciation deduction is calculated for you, and the depreciation will, in essence be close to the amount of your car payments.
When you use Standard Mileage Rate, depreciation is built into the rate.
Whichever you choose, you are still allowed to deduct the interest you are paying on your car.
