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New Member
posted Jan 10, 2022 4:27:41 PM

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
Level 15
Jan 10, 2022 4:36:33 PM

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. 

Expert Alumni
Jan 10, 2022 4:39:43 PM

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.