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New Member
posted Jun 24, 2024 4:25:02 PM

Section 179 deduction

Hello,

 

I have a vehicle that I was able to claim 100% for business and a 100% Section 179 deduction. Can you still claim a deduction on the interest paid with a 100% depreciation? I wasn’t sure if you can claim both. 

Thank you!

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1 Replies
Expert Alumni
Jan 21, 2025 7:55:58 AM

Yes, you can deduct interest paid on a loan as well as registration fees/property taxes, parking, and tolls if you have already deducted the full cost of the car. These expenses are also deductible even if you take the mileage deduction instead of actual expenses.

 

The interest paid on your auto loan would be included in with other interest expense, not vehicle expense.

 

For more information, see Business use of vehicle.