Are car loan payments tax deductible?

I run my own snowplowing business where it’s just me and my truck to make a few extra bucks in the winter. Am I able to use its loan as a tax deduction?

Answer
You actually should be able to! Of course, there is a caveat and it’s why most people can’t use their loan payments as a tax deduction: you can only use a loan as tax-deductible if the vehicle is for a business.
If you’re looking for more ways to save money, try using the Jerry app to help you save money on car insurance. It takes less than a minute to sign up, and you’ll see competitive rates from more than 50 top providers for free. The average Jerry driver saves $879 a year on car insurance!
Will Baldwin
Answered on Dec 03, 2021
Will Baldwin is a graduate of Ryerson’s School of Journalism with three years of experience writing and freelancing for multiple publications including The Globe and Mail. With a deep interest in geography, economics, and politics, he has come to be extremely interested in the relationship of personal finances and culture with the auto industry as one of the forefronts of his interest. When not writing, he’s an avid sports fan who splits his time between watching too much basketball and having his heartbroken by the New Orleans Saints. Will is based in Toronto, Ontario.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Find insurance savings (100% Free)
rating primary
4.7/5 Rating on App Store