You are not able to deduct the interest you pay on your personal use vehicle, if it's not being used for business.
If you are using the vehicle for your business/self-employment, then you can deduct interest that you paid on the vehicle as part of your business expenses. You can find more information on that here Business Use of Vehicles
Per IRS, on Deducting Business Expenses: "Business Use of Your Car -
If you use your car in your business, you can deduct car expenses. If you use your car for both business and personal purposes, you must divide your expenses based on actual mileage."
If it is a vehicle you use for self-employment, follow these steps:
- Log into account and click Take me to my return
- Then click Federal to the left and Income & Expenses at the top
- Scroll down to Self-Employment and click Show more
- Then click Start/Revisit next to Income and Expenses
- If you have already entered your business information, it may take you to the Your 2017 self-employed work summary screen and you'll click Review next to your business
- Then scroll down to Expenses section and click Edit/Start/Review next to Vehicle
- On the Vehicle Summary screen, click Edit next to your vehicle
- Continue through several screens until you reach screen saying Before we wrap up, did you have any other expenses for your (your car)?
- Enter interest there next to Total interest paid on vehicle
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June 6, 2019 10:33 AM
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