Interest paid on a loan to purchase a qualifying passenger vehicle for personal use may be deducted for tax years 2025 through 2028. This provision is subject to qualifiers, including the vehicle identification number on the tax return. The deduction is capped at $10,000 of interest annually. The deduction is phases out when the taxpayer's modified adjusted gross income exceeds $100,000 for single tax filers and $200,000 for joint filers. This deduction is available for taxpayers who itemize and who do not itemize their deductions.
