Can I deduct my vehicle loan payments along with the standard mileage deduction?

[ceblake22]

New car loan
used for business

[Marketstar · Accepted solution]

You cannot deduct loan vehicle payments, but, you can deduct 53.5 cents per mile (2017) or actual vehicle expenses (ie. gasoline. oil, tires, maintenance) prorated for business miles.

If you claim the standard mileage rate in year one for this vehicle, you will have the option of deducting the standard rate or actual expenses in subsequent years. If you claim actual vehicle expenses in year one, you must choose actual expenses in every subsequent year for that auto.

You can also deduct vehicle loan interest no matter which method you choose.