Ask an Accountant

Question
I bought a work vehicle. My loan payments are 227/month, Insurance 100/month and I put 2500 down on it. Can I write off any of this?
Answer

Great question! Your insurance payments are deductible. Your car payments are less straightforward. You can’t deduct your monthly car payments, but you can depreciate the total cost of the vehicle over its useful life (5 years). Your vehicle might also be eligible for bonus or 179 depreciation, which means you could write off even more of it in the first year.

For more information, check out our guide to car depreciation here!

No answer given yet!

Sarah York, EA

Sarah is an Enrolled Agent with the IRS and has 6 years of tax and accounting experience. She's an avid hiker, animal lover, and self-proclaimed chocolate connoisseur.

Followup question?
Ask away.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Got a different question? Ask our accountants.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Find write-offs.
File taxes.

Keeper Tax helps independent contractors and freelancers discover tax deductions and file taxes.

try free →