New U.S. Car Loan Interest Deduction Rules for 2025
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BTCCSquare news:
Taxpayers eyeing relief under the 'One Big, Beautiful Bill' will find stringent criteria for claiming car loan interest deductions in 2025. Only new vehicles with final U.S. assembly qualify—a distinction applying to roughly 30% of models sold domestically, per National Highway Traffic Safety Administration data.
The provision allows deductions up to $10,000 for individuals earning under $150,000 ($250,000 jointly), regardless of itemization status. Verification requires submitting a vehicle's 17-character VIN, locatable on dashboards, insurance cards, or titles.
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