Car loan interest deduction: final rules take effect Nov 9, 2026
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Final regulations on the new deduction for car loan interest (T.D. 10054, Internal Revenue Bulletin 2026-39, Sept. 21, 2026) take effect Nov. 9, 2026. The deduction is up to $10,000 of qualified interest per return, reduced by $200 for each $1,000 of modified AGI over $100,000 ($200,000 joint), for loans taken out after 2024 on a new vehicle with final assembly in the US, in tax years 2025 through 2028. It covers only a vehicle bought for personal use, meaning you expected more than half its use to be personal. In the regulation's own example, a sole proprietor expecting 60% business use does not qualify, though the business share of the interest stays deductible as a business expense. General information, not tax advice: check with a tax professional.
Your net on a $10 / $25 / $50 sale: n/a / n/a / n/a
A tax deduction rule, not a fee. It covers only personal-use vehicles; the business share of interest stays a business expense.
Source: IRS, Internal Revenue Bulletin 2026-39 (T.D. 10054) · verified
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The Reseller Index change tracker, "Car loan interest deduction: final rules take effect Nov 9, 2026," https://resellerindex.com/changes/irs/2026-11-09-irs-car-loan-interest-final-regulations/, verified Oct 23, 2026. Free to reuse with a link (CC BY 4.0). First published on the tracker Oct 23, 2026.
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