With the implementation of the One Big Beautiful Bill Act, drivers have new interest tax deductions to look forward to. If shoppers purchase a vehicle under the right conditions, they can write off much of their interest tax deductions near Muncie and beyond. To learn more about this, see some highlights below.
What the One Big Beautiful Bill Act Means for Vehicle Shoppers near Anderson
A New Deduction: The new deduction on car loan interest is effective for 2025 to 2028. People may deduct interest paid on a loan to buy a qualifying vehicle. Lease payments do not qualify. The maximum annual deduction drivers can make is $10,000.
How to Qualify for the Deduction: The interest must be paid on a loan used to purchase a personal use vehicle, secured by a lien on the vehicle, and originate after December 31, 2024.
Vehicles That Qualify: Any qualifying new vehicle must be a van, car, minivan, pickup truck, SUV, or motorcycle with a gross vehicle weight rating less than 14,000 pounds. These vehicles must also go through final assembly in the United States.
VIN: For taxpayer eligibility, the taxpayer must include the VIN of the qualified vehicle on their tax return.
A Deduction for Seniors: People aged 65 and up may claim an additional $6,000 deduction ($12,000 if both spouses qualify).
Contact Our Team if You Have Questions
Please contact our team to learn even more about these tax deductions on new vehicle interest. We love to keep our customers informed with the key information they deserve to know. Call our team or contact us online. We are also happy to set up a time for you to visit our showroom and discuss how you can use these deductions to bring home a new vehicle near Kokomo and Wabash.