2007-01-23 23:10:31 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Vehicle expenses are only deductible if you use the vehicle for business. Then, expenses are only dedcutible to the extent the vehicle was used for business. Take your business mileage divided by your total mileage and you get the business portion or your car. You can apply this percentage to all vehicle expenses (gas, repairs, insurance, interest, registration). Or, you can take your business mileage times the standard mileage rate for 2006 of $.405. Be sure to deduct any reimbursements you received from your employer.
2007-01-23 23:18:23 · answer #1 · answered by Homeslice 4 · 0⤊ 0⤋
If it is an automobile for private use the answer is no. You can get around the limitation by using a second mortagage on your home and then the interest will be deductable. But to do that for an auto loan is stupid. If the vehicle is used in part or all for business use the answer is yes some of it can be claimed as a business expense.
2007-01-23 23:21:43 · answer #2 · answered by wph00 4 · 1⤊ 0⤋
I agree with wph00 up to a point. It is not necessarily stupid. Usually it is, but not always. If you have a Home Equity Line of Credit, you get the same relief as a Home Equity Loan and more flexibility in paying it off.
I think the point wph is trying to make is that you get the tax relief but you also end up paying much more in interest if you include it in a 15 or 30 year home equity loan.
2007-01-23 23:30:25 · answer #3 · answered by skip 6 · 0⤊ 0⤋
Only if you borrowed against your home to buy the car -- and that's a TERRIBLE way to pay for a car!
If you use the car for business, the interest for the business portion of its use may be deductible.
2007-01-23 23:30:39 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Buy a cheap car with cash and now you wont have to worry about it. And dont buy a vehicle with home morgage....who wants to pay interest on a car for 30 years?
2007-01-23 23:49:00 · answer #5 · answered by bandaidgirl 3 · 0⤊ 0⤋
The only interest that is deductible is home mortgage interest.
2007-01-23 23:19:29 · answer #6 · answered by Gem 7 · 0⤊ 0⤋
Only if the car loan is wrapped into your mortgage and then it is deductible. IOW, no...just mortgages are
2007-01-23 23:16:07 · answer #7 · answered by fade_this_rally 7 · 0⤊ 0⤋