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Can a car loan be tax deductible?
We recently expanded our mobile car maintenance business by buying a new truck. Can you deduct a vehicle’s loan from your taxes?
Will Baldwin · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Congratulations on the success of your business! In terms of the
loan
, I have more good news for you. Since the vehicle is driven for business use, your car loan is tax deductible.Now, the one thing to keep in mind is that the amount you can deduct is based on how much the vehicle is used for business versus personal purposes. Personal use is not deductible. So, you must keep careful records of the percentage of time the car is driven for each purpose.
Come tax time, you may deduct the percentage of your car loan’s interest associated with the percentage of time you drive the vehicle for business use. You may also deduct business-related car expenses, so long as you retain proof of each expense (such as a receipt).
And these aren’t the only ways to save money on car expenses. With the Jerry app, we’ll help you reduce your car insurance bill, as well.
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