Article Date:
May 2008

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Zero Interest on Car Loan

Last year, I bought a $30,000 car using the car dealer’s zero interest rate on my car loan. Is there some way I can claim that part of those car payments are interest so that I can speed up my business write-offs? (C. J., Charleston, SC)


Yes. Code Section 463 requires minimum interest on installment contracts, like car loans. Thus, there is no such thing as zero interest for tax purposes.


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