IRS News Release: Guidance on Car Loan Interest Deduction

The IRS has issued guidance on the new deduction for interest paid on vehicle loans for new American-made vehicles purchased for personal use after Dec. 31, 2024, applicable to both standard deduction and itemizing taxpayers. The guidance addresses eligibility criteria, qualifying vehicles and loans, the $10,000 annual deduction limit, and information reporting requirements for lenders, with public comments being accepted through February 2, 2026. [IR-2025-129 (Dec. 31, 2025)]

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