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is interest on car loans tax deductible

Is car loan interest Tax Deductible? – CarsDirect – Prospective car buyers looking for a way to make auto loan payment interest tax-deductible have to find a way to fit it into one of the categories below. One of the most common ways to do this is to detail the auto line as a business expense. When doing this, the usual standards apply: the driver.

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Both loan interest rates are very low. The interest rate on home loan of 3.25% is most likely tax deductible. The car loan interest rate is usually not tax deductible. If you are in a 30% tax bracket.

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Does a car loan reduce my income tax? – Quora – The expense incurred like interest on car loan and depreciation are allowed as deduction but the repayment of principle is not tax deductible like a housing loan. Depreciation is allowed even when the car is bought without a loan and interest on car loan arises only when you have a car loan.

Home equity loans are tax deductible under the home mortgage interest deduction. By definition in this case, ‘mortgage’ refers to any mortgage on your home, including a second mortgage. It is also possible to qualify for this tax deduction with a line of credit or a home equity loan. So to answer.

Auto Loan Interest Rates Are Dropping : Financing: But experts say its unclear whether the action will set off heavy consumer demand. – Another explanation is that interest on auto loans, unlike mortgages, isn’t tax deductible. ullrich said many consumers who own homes have chosen to finance a new car through a home equity loan, which.

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