Car Loan Deduction Rules Are Under White House Review

Proposed regulations from the Treasury Department and IRS on the car loan interest deduction from the GOP tax-and-spending law are under White House regulatory review.

The proposed rules (RIN: 1545-BR75) reached the Office of Information and Regulatory Affairs on Tuesday, according to OIRA’s website.

The tax break, effective for 2025 through 2028, allows taxpayers to deduct interest paid on a loan used to purchase a qualified vehicle. The maximum annual deduction is $10,000 and phases out for taxpayers with an income over $100,000, according to the IRS.

The Trump administration brought back the extra layer of review by ...