Is buying a car tax deductible?

Generally, the tax paid on purchase is a sales tax and may be deductible under some circumstances. You can deduct sales tax on a new or used purchased or leased vehicle or boat but, if you live in a state with a state income tax, it probably isn't to your advantage to do so. read more

In states that don't have a sales tax, the law provides a deduction for other taxes or fees paid. This deduction is available whether or not a taxpayer itemizes deductions on Schedule A. The deduction is limited to the taxes and fees paid on up to $49,500 of the purchase price of an eligible vehicle. read more

Most small businesses can also deduct the amount of interest paid on business car loans - as long as the vehicle is used for business and not personal use. By deducting the finance charges, or interest charges, that you pay on commercial vehicle loans: you can also save a lot of money on your income taxes.`. read more