Car Loan Interest Deduction

September 4, 2026 / Source: IRS

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

SUMMARY: This document contains final regulations regarding the deduction for
certain taxpayers for an amount up to $10,000 of qualified passenger vehicle loan
interest. This document also contains final regulations regarding new information
reporting requirements for certain persons who, in a trade or business, receive from any
individual interest aggregating $600 or more for any calendar year on a specified
passenger vehicle loan, including applicable penalties for failures to file information
returns or furnish payee statements as required. These regulations affect taxpayers
that may deduct qualified passenger vehicle loan interest, and also persons subject to
these information reporting requirements.

DATES: Effective date: The final regulations are effective on [INSERT DATE 60 DAYS
AFTER DATE OF PUBLICATION IN THE FEDERAL REGISTER].