Car Loan Tax Deduction New for 2025
Alright, this is new to me too, so let’s dig in. Consider this a first run at the new tax deduction in Trump’s big tax bill for 2025. I’m sure there is a lot of nuance, but this is a first whack. Proceed accordingly as we examine the new way to deduct car loan interest from taxes. No Tax on Car Loan Interest No tax on car loan interest is dumb. There was never any tax on car loan interest. Car loan interest is an expense, not income. So, you don’t pay tax on car loan interest already. Even if you did pay taxes on car loan interest, a deduction for that wouldn’t be “no tax” it would be less tax. So, now that we’ve dispensed with the marketing, let’s do this. How To Deduct Car Loan Interest Trump pumps out the headlines, congressmen write up the bills so it comes close to what Trump said. Actually, congressional staffers experienced in writing legislation write the bills, or so we hope. In this case, no tax on car loan interest comes with some important limitations. What is a Qualified Vehicle for Deductible Car Interest? People are always complaining about how long …
