Personal Automobile Loan Interest

[BETTY PHILLIPS]

I Have Had A Client Tell Me That Personal Auto Loan Interest Is Deductible If The Auto Was Purchased After Nov 15, 2008. I Cannot Find Any Reference To This Deduction

[KBTS]

They probably heard it from their cousin, hairstylist, attorney, etc.etc. There is no deduction for interest on a personal auto.

Here is an article from the WSJ: http://online.wsj.com/article/SB123367074086743407.html

It talks about an amendment to the Senate stimulus plan to allow the deduction for interest and sales taxes on an auto purchase. It remains to be seen whether this will make the final version of the plan.

[JIMJR4TAXES]

Need To Know More Facts & Circumstances

[ChEAr$]

Why?

Need To Know More Facts & Circumstances

personal auto loan interest is not deductible...... yet! Stay tuned to the Senate for later
developments.

Yesterday client had a list of things to ask me about. She was pretty sure they didn't
qualify for all except maybe one, which she had heard on the television was $1,000 for
homeowners.

[gkaiseril]

Is There a Business Use of the Car?

In general one can not deduct the interest of a personal loan. But if you have a business use and can identify the actual business releated interest then the loan interest can be deducted on the form that the business use is reported on. See page 35 of IRS Pub 334 Tax Guide for Small Business for an example and more information about how to deduct the business portion of the automobile loan.

[taxea]

there is no mention of any business in the original post. taxea