Is the interest rate paid on an auto loan deductible for self-employed?

Question:

I am maybe taking on an auto loan with high interest 17.9% I really like/love this vehicle, and although the monthly payments are high, if the interest /finance charge I pay yearly on it is tax deductible, I will do it. (Last year I had self-employed health insurance at $330.00 per month--total tax write off). Is optional coverage for Credit Life...or Accident & Health on this vehicle covered as deductible as well?

Answer:
First of all you would have to prove that you use the vehicle only for business. And that means going from your office to see a client or do some specific business trip. It does not mean going from your home to the office. If you use it ONLY for business then there is a schedule of depreciation that you must use for deducting the expense of a vehicle or any business equipment. It is really a red flag to the IRS when you try to deduct vehicle expenses. And you can't just deduct the interest expense. If you use it for business AND other driving, then you get to deduct a certain amount per mile for business driving. The schedule is set by the IRS. I was in an audit for 3 years over business car expenses.

According to how I read this IRS info, yes, but only the percentage that you use the vehicle for business.

Yes, as long as you use your vehicle for biz purposes, then it's a time percent thing.

Is the interest rate paid on an auto loan deductible for self-employed?

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