PSC Accounting and Tax Service LLC

Looking for a new car after the hail storm?
Your interest on a new car MAY be deductible.

Here’s how the auto loan interest tax deduction works:

The measure temporarily lets car buyers write off up to $10,000 a year in interest paid on qualifying auto loans from 2025 to 2028

You don't have to itemize to claim the deduction.
But not every buyer or vehicle will qualify.

To qualify, the car must be new, for personal use, and meet a "final assembly" in the United States requirement — a rule some industry manufacturers say could exclude many popular imports.

Cars, minivans, vans, SUVs, pickup trucks, or motorcycles, weighing less than 14,000 pounds qualify, according to the IRS. ATVs, trailers, campers, used cars, and vehicles assembled abroad are not eligible.

The deduction is limited to $10,000 per year and phases out for individuals earning more than $100,000 or couples making over $200,000.

Parents of a sole proprietorship or a single member llc can hire their under 18 children and pay no f**a taxes. As well as no federal unemployment!!