02/11/2026
As Tax Season gets into full swing, we wanted to let you know about a particular tax benefit included in the recently passed One Big Beautiful Bill Act (OBBBA).
Starting with your 2025 return (filed in 2026), individuals can deduct up to $10,000 of interest paid on a qualifying auto loan for a NEW vehicle.
To take this deduction:
The car must be new and for your personal use (no business or lease vehicles).
It must have been purchased with a loan taken out after Dec. 31, 2024.
The vehicle must meet certain IRS rules — like the vehicle's final assembly must be in the U.S. and the weight must be under 14,000 lbs.
Also, you can claim this deduction regardless of whether you itemize or take the standard deduction!
This deduction will begin to phase out if your modified adjusted gross income is over $100,000 (single) or $200,000 (joint).
If you have any questions about this or any other tax law provisions, feel free to send us a message or give us a call.
Thank you for your continued trust in us for your Accounting and Tax needs!
