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I purchase new car through HELOC. My HELOC account set up with variable rate plus 1.5 Prime rate. The car cost $26690 (thousands) dollars. I need advice as how to repay these HELOC borrowed money for car purchase with income tax deduction. I bought this vehicle for business usage mostly, as I am self-employed.

Please help me with advise as how to set-up the payment’s options monthly and for how long. The Bank, HELOC borrowed from is very flexible with the payment’s options.

Thx,
Cheers,
Zena
 

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Zena, I would suggest that you contact an accountant. However, from what I know, you'll have to record the mileage that you use for business. Take that as a percentage of your total mileage, then take that percentage to find the amount of interest you can deduct.

For example, if you used your car for business 50% of the time and paid $1000 in interest, then you can claim $500 as a business expense.
 
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