No Tax on Car Loan Interest
For tax years 2025 through 2028 there will be a deduction of up to $10,000 of car loan interest for individuals. To qualify for the deduction the debt must be secured after December 31, 2024 for the purchase of a new personal use vehicle.
Qualifying vehicles include a car, minivan, van, SUV, pickup truck, or motorcycle. Vehicles must have a gross weight of under 14,000 pounds with final assembly in the United States. There are several exceptions which will not qualify for the deduction. RVs and campers do not appear to qualify for the deduction.
The deduction will phaseout for single filers with modified adjusted gross income over $100,000 ($200,000 for married filing joint filers). There are various reporting requirements that will need to be followed to receive the deduction.
Qualifying vehicles include a car, minivan, van, SUV, pickup truck, or motorcycle. Vehicles must have a gross weight of under 14,000 pounds with final assembly in the United States. There are several exceptions which will not qualify for the deduction. RVs and campers do not appear to qualify for the deduction.
The deduction will phaseout for single filers with modified adjusted gross income over $100,000 ($200,000 for married filing joint filers). There are various reporting requirements that will need to be followed to receive the deduction.