Nevada Taxes and Auto Title Loans
Tax time is upon us once again, and many of us are scrambling to put together all of our documents to make sure we meet the filing deadline (which is extended to April 18th this year). If you are thinking about filing your own taxes this year, it’s important to understand what tax deductions and credits are available to you.
Title loans can have an impact on your federal or Nevada state taxes, depending on how you use them. Here are two important considerations for auto title loans and your taxes:
Generally speaking, there are no tax breaks for auto title loans in Henderson, either on your federal taxes or on your Nevada state taxes. Title loans are personal loans, and as such, you are not allowed to deduct the interest you pay on them like you can for a home loan.
However, there are exceptions – as there are almost always exceptions when you are talking about any tax issue. The primary exception is if you take out a title loan for your business vehicle to pay business expenses. You can then write off the interest you pay as a business expense. In certain situations, you may also employ this tactic if you are self-employed but do not own a business (again, assuming you get the loan for business purposes).
The only way to know for sure if you can deduct the interest from your title loan is to talk with a certified public accountant or tax professional. Your tax professional can let you know what circumstances would allow you to deduct the interest from your auto title loan on either your federal or Nevada state taxes.