Can I claim the interest on a car title loan as interest paid on your car in the self employed business section?

Forum|Forum|1 year ago
March 28, 2025
1 reply
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This is a vehicle I use to Instacart

AmyC

Employee

You can claim the percentage used for business. For example, if your car is used 50% for business, then 50% of the interest would be deductible.

Reference: Business Use of Vehicles - TurboTax Tax Tips & Videos - Intuit

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Opus 17

Employee

@AmyC wrote:

You can claim the percentage used for business. For example, if your car is used 50% for business, then 50% of the interest would be deductible.

Reference: Business Use of Vehicles - TurboTax Tax Tips & Videos - Intuit

However, the purpose of the loan must be for the business. If you take out a loan for personal expenses, the interest is not a deductible business expense, even if it is secured by a business vehicle.

To be deductible, business expenses must be ordinary and necessary expenses of the business.