How does one calculate "Total Interest Paid On Vehicle" for business?

[drummer_chick]

How do I calculate "Total Interest Paid On Vehicle" for business use? Turbotax gives a good explanation of WHEN to claim the "Total Interest Paid On Vehicle" but does not tell you HOW to do so. Is this deduction just for those who are leasing or still paying off their vehicle??? I read on cars direct (2016), "You need to calculate the entire expenditures of your car. Multiply your monthly fee by 12 to get the exact dollar amount. If you have had your car for less than 12 months, calculate the expense by multiplying your monthly fee by the number of months you have leased the vehicle or car...  Deducting the costs of leasing a car is ideal for those who use any vehicle for 50% or more business-related reasons." I've also read it's important to take into account the extra costs, including gas, insurance, and maintenance fees. Thus, if my car is paid off, can I still use this deduction?

Any insight would be appreciated! 😉

Pop-up info offered on Turbotax:

"If you used this vehicle the entire year or kept mileage records even when you weren't using it for business, enter the total amount of interest paid on this vehicle for 2019 and we will figure the amount that is deductible for this business.

If you did not use this vehicle for the entire year and entered months of business use, still enter the total amount of interest paid in 2019."

[ColeenD3]

Please see this answer from JulieH1.

If you use your car for business purposes, you may be able to deduct actual vehicle expenses. But you will need to keep accurate records of your business expenses to show proper use of the vehicle. Actual vehicle expenses that may be deducted, when used for business, may include but is not limited to:

Automobile loan interest
Vehicle maintenance
Insurance
Tolls and parking fees
Gasoline
Oil Change

To determine the amount of each actual vehicle expense that may qualify for a tax deduction you will need to calculate the percent of time that the vehicle is used for business. Typically, this calculation is determined by the number of miles driven for business purposes only.

You will have to determine if it is more beneficial to you to use the standard mileage rate deduction or actual vehicle expense deduction. You cannot use both methods.

If this is a business you will enter the vehicle expenses on Schedule C for your business.  You can type "Schedule C" in the search bar and then choose what you work on and go to Business expenses.