Millions of people receive a federal tax deduction for the interest they pay on home loans. Under President Donald Trump’s new tax-cut law, many people for the first time also could claim a tax deduction for interest on their vehicle loans.
The new tax break will be available even to people who don’t itemize deductions. But there are some caveats that could limit its reach. The vehicles must be new, not used. They must be assembled in the U.S. And the loans must be issued no sooner than this year, to list just a few qualifications.
Here are some things to know about the new auto loan interest tax deduction:
Under President Donald Trump’s new tax-cut law, people can claim a tax deduction for interest on their vehicle loans. AP Candidate Trump promised an auto loan interest tax break
Trump pledged while campaigning last year to make interest on car loans tax-deductible. He