Are car payments tax deductible (for business use)?

noursaleh98 — Fri, 02 Jan 2026 22:28:06 GMT

Re: Are car payments tax deductible (for business use)?

Mike9241 — Sat, 03 Jan 2026 02:30:05 GMT

you have not provided enough info to give a definitive answer. Generally, employee business expenses are not deductible. so the type of entity and your relationship to it, including whether you are an owner, is important.

also important if you are asking about car payments is whether you have an operating lease or a capital lease. The rules for these for accounting and taxes purposes are not the same. also, commuting mileage is not deductible. See IRS pub 463

https://www.irs.gov/pub/irs-pdf/p463.pdf

topic Are car payments tax deductible (for business use)? in Deductions & credits

Are car payments tax deductible (for business use)?

Re: Are car payments tax deductible (for business use)?