DEDUCTION FOR NEW VEHICLE LOAN
01.Core Concepts
INTEREST (2025-2028) • Below-the-line deduction for up to $10,000 of qualified passenger vehicle loan interest. • Available regardless of whether the taxpayer takes the standard deduction or itemizes deductions. • Debt must be a first lien and must be incurred after December 31, 2024. • Personal passenger vehicle under 14,000 pounds • Final assembly in the U.S.A. • Leases do not qualify, nor do used vehicles. • Deductible amount (after applying the $10,000 cap) is phased out by $200 for each $1,000 (or portion thereof) by which MAGI exceeds $100,000 ($200k for MFJ).