Just received CT loan interest info from bank... (vehicle interest deduction)

[Beetlebug62]

So, this year saw the end of the EV tax credit, and we also got the, above-the-line, vehicle interest deduction. I just got a letter from my bank with my interest paid for 2025, $916.94.

Just wanted to let others know they should expect to get similar letters if they bought and financed their CTs in 2025. So, at typical marginal rates, the deduction might be worth $250. Of course, my interest was for 9 months since I bought my CT at the end of March. I'd rather have the 2% loan and a smaller interest rate deduction. Every little bit helps.

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[SlegMD]

Thank you!

 

[Gaximus]

Is this for 2025 only?

 

[Outdoors]

Complete phase out at 250k joint filers. Would like to see the credit profile change in the tranche being sold during this time. It could be very funny.

 

[damageprone]

I don’t believe the majority of us would qualify on this stipulation:


Phase-Out Details


The deduction phases out for higher-income taxpayers based on modified adjusted gross income (MAGI):


• Phase-out begins at $100,000 MAGI for single filers (or head of household, etc.).


• Phase-out begins at $200,000 MAGI for married filing jointly.


• The allowable deduction (after the $10,000 cap) is reduced by $200 for every $1,000 (or portion thereof) that MAGI exceeds the threshold.


• It is fully phased out (reduced to $0) at $150,000 MAGI for single filers and $250,000 MAGI for joint filers.

 

[Limes2]

Is this for 2025 only?

For tax years 2025–2028, individuals can deduct up to $10,000 in interest paid on loans for new, US-assembled personal vehicles (under 14,000 lbs) purchased after Dec 31, 2024.

This is one of the pieces of legislation from the One, Big, Beautiful Bill.

 

[xmario]

Those numbers are irrelevant.
$10K interest /year you'd need to buy a $300K car on a 5 yr loan and must make under 100k individual. Who would give you that loan???
Amerikan dream has shifted! At least you save on property tax if you live in your car. Car insurance and house insurance would be comparable tho

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