01/15/2026
π Car Loan Interest Deduction: New Guidelines Proposed π
The Treasury Department and IRS have released proposed regulations outlining how taxpayers may deduct interest paid on qualifying car loans used to purchase a new, made-in-America passenger vehicle for personal use.
π Key Highlights:
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Deduction applies to new vehicles only
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Must be made in the U.S.
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Available for tax years after Dec. 31, 2024 through Dec. 31, 2028
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Can be claimed whether you itemize or take the standard deduction
π While the deduction itself is already law, these proposed rules clarify how it will be applied once finalized.
π‘ This could be a meaningful tax benefit for eligible car buyers over the next several years.
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