My brother is able to deduct the interest he pays on his farm equipment, and I’m able to deduct the interest I pay on a student loan… so I was wondering if anyone knows if it’s possible (or legal) to deduct the interest paid on an car loan come tax time?
Related posts:
- Can you deduct interest froman auto loan on your taxes?
- What is the maximum legal interest rate for a car loan?”?
- Can I negotiate my car loan interest with the company who loaned me the $$?
- What’s the best way to request a lower interest rate on a car loan?
- Can I refinance an auto loan and use it to make a purchase?
{ 10 comments… read them below or add one }
Not if it’s your personal car. If it’s used for a business you own, then you could deduct the proportion than your car was used for the business – sort of like your brother’s farm equipment, which is used in his business.
A website I’ve recommended in the past would be…
http://www.safelinked.info/go.php?link=auto
Have a nice day.
No… unless you use your car for business…and no that doesn’t mean driving to work.
I f you use it for business
YES SAME AS YOU CAN WITH INTEREST PAID ON A MORTGAGE OR SCHOOL LOAN
Neither of you are legally deducting "interest payments" legally on your income taxes.
Your brother is taking the interest paid as an "expense" of doing business, but is not specifacally taging it as interest. there is NO interest deduction available to US taxpayers other then in that of the mortgage deduction.
A car loan interest for personal use is the same thing, not deductible and neither is the student loan interest.
No.
However, if you own a business, which in turn, owns the car, the business can deduct the interest paid.
Also, you can deduct the interest paid on the car if it’s investment property, like a collectable car.
If your brother is in the business of farming, his equipment is business equipment and the interest is a business expense.
If your vehicle is used for business, you can deduct finance charges (a portion based on your business usage) on your car loan if you are self-employed.
If you are an employee who uses your car for business and you are not reimbursed, you can deduct mileage or actual expenses of operating the car. However, interest charges are not part of the actual expenses of operating the car and are not deductible for employees.
The last time you could deduct "personal interest" was back in 1986.
no, and did you know that if you took out a loan on your house to pay for that car…the interest still would not be "legally deductable". but most people dont know that.
Unless you use the car regularly for business purposes, you cannot deduct the interest for a car loan.