Can you claim car loan payments on taxes?
I’m a professional dog walker with a pretty sizable loan on my vehicle. Can I claim car loan payments on taxes?
All that time with dogs—what a job! The short answer is yes, you can claim car loan payments on taxes.
If you have a car loan on a vehicle used for business purposes, the car loan interest and some vehicle expenses are able to be deducted when filing your taxes.
However, in order to do so, you will need to carefully document the percentage of time you drive the vehicle for business versus personal purposes and keep all receipts associated with car-related business expenses.
What’s even better, there are more ways to cut your vehicle expenses. With the Jerry app, lowering your car insurance premium has never been quicker or easier.
Jerry will generate competitive quotes from top providers in less than a minute. And Jerry gathers your information from your past insurer, so you’re not responsible for any long forms or phone calls. Basically, you get all of the savings and coverage, with none of the hassles.
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Read advice from car experts at Jerry
Browse by topics
What others are asking
Where can I get a loan for a commercial vehicle?
I want to get a Nissan NV200 for my electrical company. Where can I find a lender that does loans for commercial vehicles?
Oct 27, 2021
Can you claim car loan repayments on taxes?
We own a family construction business and recently bought a new truck. Can we claim the car loan repayments on our taxes?
Dec 02, 2021
Can interest paid on car loans be deducted?
My friend and I are looking at buying a truck and starting a landscaping business. Would the interest we’d pay on the loan for the vehicle be tax deductible?
Dec 02, 2021