Since tax season is upon us I was wondering if we are allowed to write off the interest on our car loan. I am guessing you can if you have a business but cannot on your personal taxes.

Any thoughts?

 

Typically if you have a business and you are writing your car off as a business expense, you have to either keep all your receipts, gas, oil changes, car washes and etc. Unless you want to do the average mile deduction. If you do that then you have to keep a log of where you traveled, what days you traveled and keeping up with the mileage everywhere you went. (pain the the butt) You need to ask a tax advisor to be certain but this is what I have been told.

 

If I remember right, if the car is under the business's name then you can.

 

Business yes. Personal no. Individuals can deduct any ad valorem taxes paid to get tags though. I know some states charge super high fees for tags and this is sometimes attributable to ad valorem taxes. Mississippi is one and I think GA may be another.

 

Correct. IRS is getting to be pickier about the documentation as well. (Don't try to make it up after the fact.)