Asked over 1 year ago - Lakewood, CA
FlagI got new car from credit. But the new car is under my and my friends name. Can we claim the tax deduction or anything kind of credit for the same car differently? how does this thing work for the tax purpose? The car is under both of our name in credit company.?
Well, as Attorney Lively points out, you cannot deduct cost of your personal auto even if you own it outright and make all the payments. It is not a qualified residence, and there is no "cash for clunkers" credit anymore if that is what you mean.
If this is a business asset, it can be depreciated, but it must be paid for by the business or whoever owns the business if it is sole prop.
But it sounds like your friend has helped you purchase a personal auto and you are looking for some kind of tax break related to the purchase. But there really is no such thing.
Christopher Larson
Insight Law
www.insightlawfirm.com
If you bought it in 2011, there is a sales tax deduction on your federal return. If the car was bought in 2012 it will not be available unless congress extends it. The deduction is available to taxpayers that itemize. In most cases itemizers have a real property interest deduction that makes it worthwhile.
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