A simple Answer TO yOUr Question
Can I deduct my car payment if I'm self-employed?
If you are self-employed and use your vehicle for business, you can deduct either actual vehicle expenses (including depreciation on a purchased car or lease payments on a leased car) or the standard mileage rate. You cannot deduct the car loan payment directly, but you capture the cost through depreciation. The deduction is reported on Schedule C of your tax return.
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The Smart Buyer's Guide to Leasing vs. Buying in 2026
Discover:
✓ When to lease vs. buy
✓ Hidden fees to watch for
✓ Tax benefits for business owners
✓ Current manufacturer incentives
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