Can I Write Off Vehicle Payments As Business Expense?

Posted: Thursday, May 26th, 2016

Are you shopping for a new car right now? Do you plan to use your vehicle for your work or business? Don’t leave money on the table – you can write off those auto payments if you plan to use your vehicle for business. Before you fill out an auto loan application, you might want to consider the tax status of your vehicle. Learn more about how to maximize your refund and minimize your tax burden right here.

When Your Vehicle Qualifies as a Business Expense

A business can always write off expenses, such as business owned vehicles. If the vehicle is not business owned, then the portion that is used for business use can be written off. The federal government allows for expenses, and you have the option of deducting your actual expenses, or a standard mileage rate. However, if you take the standard mileage rate, then that deduction is the only one you can use. Your monthly payment is not a business expense. A business can, however, write off the interest on a car loan, if the car is owned by the business.

If you lease a vehicle things are a bit different. In that case the lease is an expense, since it is not part of the purchase of a vehicle. You can write off a lease payment as an expense if you write off actual vehicle expenses.

How to Write That Expense Off On Your Taxes

To write off vehicle expenses you must use Schedule C: “Profit or Loss From a Business”. Under the “Expenses” section you’ll find a place to enter car or truck expenses. If the vehicle is business owned, those expenses must be filed under the business’ taxes.

Let Green Light Auto Credit Help You Finance Your Next Car

If your business needs a new vehicle, or you need a new vehicle for your job, Green Light Auto Credit’s financial specialists are determined to help you find the financing rate that you need.

Find the Financing You Need at Green Light Auto Credit

Contact Green Light Auto Credit online now or give us a call at (800) 200-5551 to discuss your next auto loan or see if you can write off your vehicle payments as a business expense. We’re happy to answer any questions you might have about your financing options.