My brother is able to deduct the interest he pays on his farm equipment, and I'm able to deduct the interest I pay on a student loan... so I was wondering if anyone knows if it's possible (or legal) to deduct the interest paid on an auto loan come tax time?
2007-02-08 09:02:42 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Not if it's your personal car. If it's used for a business you own, then you could deduct the proportion than your car was used for the business - sort of like your brother's farm equipment, which is used in his business.
There are special laws passed to encourage education. The law allowing deduction of student loan interest is one of them.
A few decades back, personal interest like car loans and credit card interest was deductible if you itemized. That law was changed some time back.
2007-02-08 13:38:10 · answer #1 · answered by Judy 7 · 0⤊ 1⤋
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2016-09-27 22:45:00 · answer #2 · answered by Mickey 3 · 0⤊ 0⤋
No, it's not legal to deduct the interest paid on an auto loan unless you are self employed and it is used for business, sorry!
2007-02-08 09:25:02 · answer #3 · answered by kali 2 · 1⤊ 1⤋
No, it's not legal to deduct the interest paid on an auto loan unless you are self employed and it is used for business, sorry!
2007-02-08 09:06:57 · answer #4 · answered by ~Sabie~ 2 · 1⤊ 1⤋
Car loan interest is considered personal interest and isn't deductible any longer (late 1980s it ended). You brother and his farm equipment has to do with a business - that's different. You should get a statement regarding your student loan interest - I did.
2007-02-08 09:31:26 · answer #5 · answered by Dizney 5 · 1⤊ 1⤋
No. Only home mortgage interest is deductible on your tax return.
2007-02-08 09:18:44 · answer #6 · answered by Bostonian In MO 7 · 1⤊ 1⤋
You can ONLY if you have a business and your vehicle is part of that business. Otherwise NO... they changed this law only a few years ago.
2007-02-08 10:36:43 · answer #7 · answered by Kitty 6 · 0⤊ 2⤋