GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
it’s possible for you to read more about oureditorial guidelinesand our products and servicesreview methodology.
Is Car Loan Interest Tax Deductible for Personal Use?
Car loan interest is not tax deductible if the car is used solely for personal reasons.
The IRS classifies this as personal interest, which isnt eligible for a tax break.
When Can You Deduct Car Loan Interest for Business Use?
However, you may be eligible for a standard mileage rates deduction on unreimbursed business miles.
The remaining 60% tied to personal use isnt eligible for atax deduction.
Enter car-related deductions on Line 9 under the Car and Truck Expenses section.
If youre a farmer, you might useSchedule F (Form 1040)to deduct farming-related vehicle expenses.
To claim the deduction, track your mileage, pick the right method and maintain accurate documentation.
If youre unsure whether you qualify, consult a tax professional for guidance.
FAQ
Elizabeth Constantineaucontributed to the reporting for this article.
you’re free to learn more about GOBankingRates processes and standards in oureditorial policy.
Share This Article:
