Deduct car loan interest for tax reasons?

i recently bought a car and i have a loan with interest, can I deduct the interest of that car loan towards my 2008 taxes? thank you.. please accountants only

Deduct car loan interest for tax reasons?

No, that is unless you also have a business. In this case you can write off depreciation or expenses...not both. Pick the greater and there's your answer.

Deduct car loan interest for tax reasons?

That went down the sewer several years ago.

If it's owned by a business, everything is deductible.

Deduct car loan interest for tax reasons?

No, unless it is a car used for business purposes (not commuting to and from work).

Deduct car loan interest for tax reasons?

For personal returns, no. That is why, if you must finance a car purchase, taking out a home equity loan or line of credit is a good idea, with a caveat. Home mortgage interest is still deductible.

The caveat: Pay off the debt in the same time period you would the car loan. People are tempted to drag out the term to keep the payments lower, and end up negating the tax benefit. My personal rulle of thumb is if I can't afford the payments on a 3 year car loan (or less), I need to buy a cheaper car.

Deduct car loan interest for tax reasons?

Your time machine would have to take you back to 1986. That's the last time personal interest could be used as an itemized deduction.

Deduct car loan interest for tax reasons?

Your personal car, not one owned by a business you own? No you can't. Many years ago you could, but it's been a long time.