Dear Terry, Is there any way to deduct interest paid on my auto loan from my taxes? -- JennyDear Jenny, Unless you use your vehicle as part of a business, interest on the loan is not tax-deductible. Even if you do use your vehicle for a business, consult a tax expert to make sure you don't claim more than you're entitled to. If you own a home or condo, you might be able to take out a home equity loan or home equity line of credit to pay off your auto loan. At that point you may be able to deduct the interest payments on the new loan. This week•Car sales down but prices up•Credit score too low to get best rate•Don't sell car for trade-in value•Is interest on my car loan tax deductible?If you have a question for Terry, e-mail him at Driving for Dollars. Save money on your car -- sign up for Bankrate's new weekend Car & Money newsletter. advertisementRelated Links:7 best off-to-college carsNational auto loan averagesWhat changes auto loan rates?Related Articles:All new cars for 20105 steps to 'clunker' dealTake the 'cash back?'
Dear Terry, Is there any way to deduct interest paid on my auto loan from my taxes? -- Jenny
Dear Jenny, Unless you use your vehicle as part of a business, interest on the loan is not tax-deductible. Even if you do use your vehicle for a business, consult a tax expert to make sure you don't claim more than you're entitled to. If you own a home or condo, you might be able to take out a home equity loan or home equity line of credit to pay off your auto loan. At that point you may be able to deduct the interest payments on the new loan.
If you have a question for Terry, e-mail him at Driving for Dollars. Save money on your car -- sign up for Bankrate's new weekend Car & Money newsletter.