DID YOU KNOW? You can write off your loan interest?

Take out a loan on a NEW vehicle built in the USA and you can write off the loan interest on your 1040 tax form. It is an above the line deduction, so it will reduce your taxable income as well.

• Most important is to make VERY SURE that the VIN starts with a 1, 3, or 4. This ensures a vehicle with Final Assembly in the USA. We can't assume anything here because the VIN will need to be on the tax form, and if it is not the right one, the customer will be screwed by the IRS. As an example, the Chevy Silverado is made in Canada, Indiana, and Mexico, all the same, but only one will work for a tax deduction. So any customer who wants to get this deduction will need their VIN checked very closely for IRS compliance. We don't want to be on the hook for that issue.
• The maximum deduction is $10,000 per year for single filers with taxable income under $100,000 and joint filers under $200,000. There is a phase-out to zero tax deduction of $200 per $1,000 over those incomes, up to $150,000 for single filers and $250,000 for joint filers. So the customer needs to consult with their tax advisor to see if they qualify.
• Only vehicles purchased new on a first lien loan will qualify for the tax deduction. NO leases, cash purchases, home equity loans, or used vehicles are allowed. The vehicle purchase can only be for personal use and not for business purposes, commercial vehicles, or fleet vehicles.
• Qualifying NEW vehicle types include cars, SUVs, pickup trucks, vans, minivans, and motorcycles. The vehicle must have completed final assembly in the USA and have the aforementioned first digit VIN of 1, 4, or 5. The IRS will flesh it out on the tax forms, so it has to be right the first time.
  The rule is that they must be NEW vehicles; there is nothing about model years or anything like that. Just new and not used.

This is eligible on vehicle years between 2025 - 2028.