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Is buying a car tax deductible?
I want to buy a car partially to use for my business. Will I be able to deduct this purchase from my taxes, or do I have to pay for it out of pocket?
Liz Jenson · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Taxes can be really confusing, so try not to worry! Buying a car isn’t totally
tax deductible
, but you can typically deduct the state and local taxes by using Schedule C, also known as Form 1040.In some states, however, your purchase won’t come with sales tax. In these states, you’ll have to deduct the charges from your income taxes instead, which can be a little more complicated. Keep in mind that you can’t deduct both sales and income taxes, so you’ll need to pick one before moving forward.
You’ll also need insurance for your new vehicle. Check out the
Jerry
app, where you can see a list of car insurance quotes that work for you in minutes. The average user saves $887 per year.View full answer
- Gregory R.
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