Is Car Loan Interest Tax Deductible?
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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
What Is Auto Loan Interest?
Is Auto Loan Interest Deductible?
If You Financed a Personal Vehicle
If You Financed a Business Vehicle
How Do You Write Off Car Loan Interest?
Actual Expenses Method
Depreciation (with limits) Licenses and registration fees Gas and oil Tolls Lease payments (with limits) Insurance Garage rental and parking fees Repairs Tires Interest (if you are self-employed and use the car for business) Personal property taxes
Standard Mileage Rate Method
Can Auto Loan Interest Be Deducted If It Isn’t a Business Expense?
Investment interest Qualified mortgage interest Student loan interest Non-farm business interest Farm business interest
Is There a Tax Benefit to Auto Loan Refinancing?
The Takeaway
About the Author
Kim Franke-Folstad is an award-winning journalist with 30 years of experience writing and editing for newspapers, magazines and websites. Her work for SoFi covers a range of topics related to personal finance, including budgeting, saving, borrowing, and investing.
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