Does the interest on a car loan reduce my income tax liability?
"I just bought a car and I was wondering about how the loan affects my taxes.
Can you write off the interest on a car loan?"
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Answered on Jun 15, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“Unless your car is for business purposes, you cannot write off interest on a car loan.
If it is a business vehicle, you can deduct depreciation, interest, and possibly mileage off the vehicle when you do your taxes.”
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