Can you write off the interest on a car loan?

I have a mobile veterinarian business. I think I read something somewhere that said writing off interest on a car loan is possible. Is this true? Can you write off car loan interest when filing your taxes?

Answer
Mobile vets are the wave of the future! As for your question, it’s true, some taxpayers can write off the interest on a car loan.
The reason I say some is because it comes down to what you use the car for. Cars driven for personal use do not qualify. The vehicle must be primarily used for business purposes.
If you use the vehicle for both personal and business reasons, you will need to carefully document how much it is used for each purpose.
Let’s say your records show that you drive the car 80% of the time for your vet business. Then, when filing your 2021 taxes, you may deduct 80% of the total car loan interest you paid in 2021.
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Will Baldwin
Answered on Dec 02, 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.
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