Questions & Answers

Can I deduct the interest on my car loan even if I use the standard mileage rate?

Yes, the interest on your car loan is deductible even if you use the standard mileage rate. But, you can only deduct the amount attributable to business use.

For example, if you paid $1000 of interest on your car loan and used the vehicle 70% for business use and 30% for personal use, you can deduct $700 on Schedule C. The remaining interest isn't deductible on your tax return.

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