Farm CPA Report

Farm CPA Report

IRS Provides Transition Relief for Reporting Car Loan Interest

OBBBA allows up to a $10,000 interest deduction for purchases of personal vehicles

Paul Neiffer's avatar
Paul Neiffer
Oct 24, 2025
∙ Paid
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Photo by Mason Field on Unsplash

The One Big Beautiful Bill Act added a new tax code section that allows taxpayers to deduct up to $10,000 of interest related to the purchase of a personal passenger vehicle. It is commonly referred to as car loan interest deduction, but it can be for any vehicle that:

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