# Can I deduct portion of car payment on taxes?



## Cameron89 (Apr 25, 2016)

Hello all, I am a new driver, first week. I would like to start by thanking the forum's members for all the help. It has been very helpful to learn about 2016's standard deduction of .54 cents a mile. Since my actual calculated cost is around .25 I am hoping to show as close as I can to a taxable loss, while making real profit.

So my question is this? Can I deduct my car payment as a expense to my business, or atleast a portion?


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## UberTaxPro (Oct 3, 2014)

Cameron89 said:


> Hello all, I am a new driver, first week. I would like to start by thanking the forum's members for all the help. It has been very helpful to learn about 2016's standard deduction of .54 cents a mile. Since my actual calculated cost is around .25 I am hoping to show as close as I can to a taxable loss, while making real profit.
> 
> So my question is this? Can I deduct my car payment as a expense to my business, or atleast a portion?


Only the business % of the interest paid on the loan is deductible


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## Cameron89 (Apr 25, 2016)

UberTaxPro said:


> Only the business % of the interest paid on the loan is deductible


I am no sure what portion qualifies as the business %. But only the interest that im paying on the loan is deductable? If so, thank you for the help.


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## UberTaxPro (Oct 3, 2014)

Whatever the 


Cameron89 said:


> I am no sure what portion qualifies as the business %. But only the interest that im paying on the loan is deductable? If so, thank you for the help.


For example, if you use your car 40% for business and 60 % for personal then 40% of interest is deductible. The loan payments are not deductible and you can't depreciate the car if your're using the standard mileage deduction. Depreciation is included in the .54 per mile.


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## Cameron89 (Apr 25, 2016)

UberTaxPro said:


> Whatever the
> 
> For example, if you use your car 40% for business and 60 % for personal then 40% of interest is deductible. The loan payments are not deductible and you can't depreciate the car if your're using the standard mileage deduction. Depreciation is included in the .54 per mile.


What is the best way to determine what percentage is used for business? Deduct mileage logged online from total mileage added to the vehicle? Then base a percentage? Also do you suggest the standard deduction vs manualy?

Edit: I see now, the business % of interest is included in the .54 cents. Thank you, I think the standard deduction is the best way to go.


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## Stygge (Jan 9, 2016)

Cameron89 said:


> What is the best way to determine what percentage is used for business? Deduct mileage logged online from total mileage added to the vehicle? Then base a percentage? Also do you suggest the standard deduction vs manualy?
> 
> Edit: I see now, the business % of interest is included in the .54 cents. Thank you, I think the standard deduction is the best way to go.


You need a daily log where you record ALL business miles. This includes dead miles. The miles uber records are not useful for anything.


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## Stygge (Jan 9, 2016)

Cameron89 said:


> I see now, the business % of interest is included in the .54 cents


I think you misunderstood what UberTaxPro said. You can deduct the business portion of interest ON TOP of the 54c/mile. Use your mile log to determine the business portion of your car miles.


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## Cameron89 (Apr 25, 2016)

Thank you for that. I have an understanding now. First time I have fallen under 1099 so I am doing all my learning this week. I have very helpful apps that track mileage, and receipts, that back up to a cloud.


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