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.
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