Business vehicle interest
Varies
Can I Deduct Interest on a Business Vehicle Loan?
Short answer: Yes, self-employed people can deduct the business-use share of auto loan interest, even with the standard mileage rate.
W-2 employees can't. For personal cars, the separate 2025-2028 car loan interest deduction may apply.
Records to keep: Keep a contemporaneous mileage log (date, miles, business purpose), business-use percentage, the purchase contract, and a photo of the door-jamb GVWR sticker.
Business vehicle interest
Varies
General Business
Yes, self-employed people can deduct the business-use share of auto loan interest, even with the standard mileage rate.
Business justification
Yes, self-employed people can deduct the business-use share of auto loan interest, even with the standard mileage rate. W-2 employees can't. For personal cars, the separate 2025-2028 car loan interest deduction may apply.
Category
- Vehicles by Make & Model