Is car loan interest deductible?
Car loan interest is not usually deductible.
However, car loan interest on qualified passenger vehicles may be deductible as a Car Loan Interest Deduction.
If the vehicle is used for your business or for 1099-NEC or 1099-MISC self-employment income (such as being an Uber driver), then the business portion of the car loan interest can be deducted on Schedule C or Schedule F of your tax return.
If your vehicle is for business and personal use and also qualifies for the personal Car Loan Interest Deduction, make sure to split the interest you deduct between your business and personal use. In other words, you can't deduct the same amount of interest twice on your tax return.
However, car loan interest on qualified passenger vehicles may be deductible as a Car Loan Interest Deduction.
If the vehicle is used for your business or for 1099-NEC or 1099-MISC self-employment income (such as being an Uber driver), then the business portion of the car loan interest can be deducted on Schedule C or Schedule F of your tax return.
If your vehicle is for business and personal use and also qualifies for the personal Car Loan Interest Deduction, make sure to split the interest you deduct between your business and personal use. In other words, you can't deduct the same amount of interest twice on your tax return.
