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msrmelvin
New Member

Can I use my car loan payments as a deduction?

I am making payments on my vehicle, can that be a deduction?
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2 Replies

Can I use my car loan payments as a deduction?

Interest on a personal loan, other than a home mortgage, is never deductible.

 

If the car is used for a schedule C self-employment business, there are two ways of deducting your vehicle expenses, one of which would include the interest, proportional to your actual business use of the car. 

DaveF1006
Expert Alumni

Can I use my car loan payments as a deduction?

If it is a car personal loan, the answer is no. If you are self-employed in your own business, you can deduct it if you use actual expenses in claiming vehicle expenses. if you deduct mileage, however, then you cannot deduct it.

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