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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?
Date Asked:
October 12, 2021
Answer

Great question! Your insurance payments are deductible, up to the amount that the car is used for business. 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!

Date answered:
October 12, 2021

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