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New Member
posted Mar 28, 2025 8:46:11 AM

Can I claim the interest on a car title loan as interest paid on your car in the self employed business section?

This is a vehicle I use to Instacart

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2 Replies
Expert Alumni
Mar 28, 2025 8:54:15 AM

You can claim the percentage used for business. For example, if your car is used 50% for business, then 50% of the interest would be deductible.  

 

Reference: Business Use of Vehicles - TurboTax Tax Tips & Videos - Intuit

Level 15
Mar 28, 2025 9:01:15 AM


@AmyC wrote:

You can claim the percentage used for business. For example, if your car is used 50% for business, then 50% of the interest would be deductible.  

 

Reference: Business Use of Vehicles - TurboTax Tax Tips & Videos - Intuit


However, the purpose of the loan must be for the business.  If you take out a loan for personal expenses, the interest is not a deductible business expense, even if it is secured by a business vehicle.  

 

To be deductible, business expenses must be ordinary and necessary expenses of the business.