Car purchase for child care

[ptboss429]

My wife started doing child care but in order to do so we had to purchase a bigger vehicle. Is the purchase or loan payments of the vehicle deductible? sales tax? repairs?

[RichardK · Accepted solution]

You are allowed to take a deduction for business miles, and you can use either the standard rate or actual expenses. If you use the actual expenses a portion of the annual depreciation on the bigger vehicle purchased may be allowed, also a portion of the interest on the vehicle loan may be allowed, click here for more information