a self employed business consultant took out a loan to purch

a self employed business consultant took out a loan to purchase a car. he uses the car 75% for business. he paid 1000 interest on car . he uses the regular method (actual expenses to compute deduction.how much interesr paid may be deduct

0

250

750

1000

Solution

A self-employed are allowed various tax deductions including tax deduction for business use of car.

If interest paid on a loan to purchase a car and car is used for 75% for business purpose, 75% of interest paid on a car loan is allowed as a deduction= (1000*75%)=Ans $750