Can you write off a car payment?

If you financed a personal vehicle If you bought this vehicle using a car loan, you won't be able to write off your car payment. However, you can write off a portion of your car loan interest. That's right — your loan interest counts as a car-related business expense, just like gas and car repairs.



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How do you deduct vehicle expenses? There are two ways for Uber drivers to deduct the business use of your vehicle: the actual expense method and the standard mileage rate. Regardless of which method you choose, you must report these expenses on a Schedule C form.

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If you plan to use the car solely for your business, you'll get the most tax benefits by purchasing the car through your company. Companies are allowed to deduct general car expenses such as repairs, gas, oil changes and tires.

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If you drive for Uber or Lyft, you are self-employed. As a driver for either company, you are an independent contractor rather than an employee. As an independent contractor, you provide transportation services to individuals.

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