‘Big, beautiful, bill’ offers car loan interest tax deduction

The package and spending tax on Republicans – which is called “the big and beautiful bill” – which was signed in the law last week, symbolizes tax discounts on advice and additional work wages, and also includes a tax deduction of $ 10,000 on the benefits paid on car loans for qualified vehicles.

In order to qualify to deduct temporary income tax, both vehicles and loans must meet a number of conditions.

Catched vehicles include cars, trucks, small cars, four -wheel drive vehicles, small trucks and motorcycles that weigh less than 14,000 pounds. They must also have at least two wheels, and it must be purchased new, unused, between the beginning of 2025 and the end of 2028, according to the new law.

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Vehicles for personal use should be only, not commercial or commercial purposes, and the “final assembly” of the car must be done in the final assembly of the United States to a process where the main components of the vehicle-engine, transport, body and structure-and the car is completed in the face of US-based manufacturing, Automotive Lauren Fix.

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Although the draft law does not provide a comprehensive definition of what “final assembly” means, consumers can also verify the eligibility of their car through documents or certificates submitted by agents, as traders are expected to announce qualified vehicles.

“The Tax Authority is expected to create resources in the list of resources and qualified models, similar to the current resources to obtain electric vehicle tax credits, to clarify vehicles that meet the final assembly requirements,” added Fix.

President Donald Trump signed the law of one beautiful law in the law last week. (Patrick van Katij / Getty Emoxz / Getty Erch)

In addition, the loan on the car should be a standard and insured loan. Loans may be rehabilitated as well under certain circumstances. The VIN identification number (VIN) should also be reported at tax declarations in order to qualify. Discounts do not need to be detailed, according to the new law.

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Up to $ 10,000 can be deducted in the interest of a car loan, but there is an income ceiling. For those who offer taxes as one person, he achieves more than $ 100,000 a year, or for those who provide subscribers and achieve more than $ 200,000, the discount is reduced by $ 200 for every $ 1,000 from this limit.

Up to $ 10,000 can be deducted in the interest of a car loan, but there is an income ceiling. (Istock / Istock)

Fix said that the final assembly in the United States can benefit from American manufacturing and jobs, especially companies such as Ford, General Motors, Honda, Toyota, BMW and Tesla, which have great American production facilities. However, Fileers may not benefit from low -income people from the discount.

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She said: “The exclusion of vehicles used and imported models can harm low-income buyers who often choose imported or reasonable cars-80 % of cars less than $ 30,000 are imported.”