2025 Tax Legislation – Car Loan Interest Deduction

This deduction is available tax years 2025 – 2028.

This is a new above line deduction of up to $10,000 for qualified passenger vehicle loan interest.
To Qualify the vehicle the interest paid or accrued during the year on debt incurred after 12/31/24 for the purchase (not lease). The secured first lien on and applicable passenger vehicle must be for personnel use. To take the deduction you must provide the vehicle identification number (VIN) on the tax return.

Stop in and see us in Keysville or give us a call and we can review the changes for 2025 and how they may effect your 2025 tax return.