Jacob, who is an employee of big bag co., purchased a car that he uses 80% for business purposes. of the interest he pays on his car loan., the 20% for personal use is not deductible but the 80% business portion of the interest on the car loan is

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Business

Justice Mcknight

12 December, 22:41

Jacob, who is an employee of big bag co., purchased a car that he uses 80% for business purposes. of the interest he pays on his car loan., the 20% for personal use is not deductible but the 80% business portion of the interest on the car loan is

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Emilio Chapman · Answer 1

the 80% business portion of the interest on the car loan is potentially deductable.

In order categorize the rest 80% as deductable, Jacob need to provide proof on how those 80% portion is directly related to the expense of his business. If jacob can proof it, he could deduct the portion into gross sales of the business and reduce his tax income.