Up to 10k interest deduction on personal auto loans in tax code.

[Billyk24]

Good news for some owners of vehicles purchased after Jan 1 2025
And made in the USA. I will let others expand on this thread.

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[captainjp]

Take a look at the income thresholds. Phased out after 200k combined income

 

[Blitzjb]

It is for poor people...

 

[TexasBob]

It is for poor people...

Wealthy retirees with deferred income. People 55+ buy more than half of all cars and in the premium segments like Rivian it is 62%.

The folks who write the tax code know who butters their bread: another tax break for high-asset retirees.

 

[SolartoEV]

.

 

[SlaterGS]

It is for poor people...

On here for just over 2 years and this is your first post?

 

[SadHill]

Yup. Us 40 something’s it won’t work for but my parents who have 7 figures in investments and take out less than 200K/year in income it will work for. Not cool but I get it

 

[AlphaSnowbordergirl]

Yup. Us 40 something’s it won’t work for but my parents who have 7 figures in investments and take out less than 200K/year in income it will work for. Not cool but I get it

Single filers in their 20s and 30s can use it. Will happily use it next year with my R2 interest. Thankfully, AGI is used and not your atual wage. Needed something to replace the student interest deductible for next year.

 

[savethemanual]

Wealthy retirees with deferred income. People 55+ buy more than half of all cars and in the premium segments like Rivian it is 62%.

The folks who write the tax code know who butters their bread: another tax break for high-asset retirees.

Most of these folks are leasing or paying cash, not taking out car loans....which is the benefit here, you can deduct car loan interest.

 

[ndmiller]

Yup. Us 40 something’s it won’t work for but my parents who have 7 figures in investments and take out less than 200K/year in income it will work for. Not cool but I get it

401K millionares unite!

 

[Thedude]

This is good for a lot of people. There’s a huge portion of the US population that makes less than $100k AGI and bought a new car last year. They’ll only get a couple hundred dollars but that’s a couple tanks of gas these days. I’m sure there won’t be any complaints.

 

[TexasBob]

This is good for a lot of people. There’s a huge portion of the US population that makes less than $100k AGI and bought a new car last year. They’ll only get a couple hundred dollars but that’s a couple tanks of gas these days. I’m sure there won’t be any complaints.

The under $100k households only account for 37% of new vehicle purchases and 15% of the $50k+ vehicle market (all Rivians)

The Income Reality of the $50k+ Buyer
Based on early 2026 registration and credit data from Cox Automotive and J.D. Power, here is how the $50k segment breaks down by income:

• Under $100k Income: Account for less than 15% of buyers in the $50k+ category.
• $100k – $200k Income: Account for roughly 35% of this segment.
• $200k+ Income: Account for over 50% of buyers for vehicles priced $50,000 and above.

 

[Oldsmobile_Mike]

It's a deduction. not a credit.

This doesn't help people like us at all. With the minimal income I get that isn't "taxed immediately" (e.g., non-W2 income like YouTube videos and eBay sales) we've been paying heaps on our taxes every year since the so-called "tax cuts and jobs act" of 2017. Really pretty angry about it, but as one of the poors, what can we do?

 

[tivoboy]

Yup. Us 40 something’s it won’t work for but my parents who have 7 figures in investments and take out less than 200K/year in income it will work for. Not cool but I get it

Similar to the *T investment accounts, which work best for the RICH and wealthy and want to shield more assets in their estate or next generation from taxation, this works for someone with wealth but not necessarily income and wants to finance an Expensive car (relatively speaking) and carry interest. Like many of these tax gimmicks, it won’t last long or bring overall much value to the industry or the overall tax payer group.

 

[Thedude]

The under $100k households only account for 37% of new vehicle purchases and 15% of the $50k+ vehicle market (all Rivians)

The Income Reality of the $50k+ Buyer
Based on early 2026 registration and credit data from Cox Automotive and J.D. Power, here is how the $50k segment breaks down by income:

• Under $100k Income: Account for less than 15% of buyers in the $50k+ category.
• $100k – $200k Income: Account for roughly 35% of this segment.
• $200k+ Income: Account for over 50% of buyers for vehicles priced $50,000 and above.

Definitely not applicable to most Rivian buyers, didn’t mean to imply that.

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