Canadian Money Forum banner

HELOC Taxable Deductions-Help needed!

3047 Views 1 Reply 2 Participants Last post by  FrugalTrader
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.

1 - 2 of 2 Posts
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.
1 - 2 of 2 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.