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2026 Tax Alert: The OBBBA Vehicle Loan Interest Deduction

New Deduction: Vehicle Loan Interest

The One Big Beautiful Bill Act (OBBBA) brings a welcome change for 2026 tax planning: a specific deduction for vehicle loan interest. Effective through 2028, taxpayers may now deduct up to $10,000 annually for interest paid on qualified passenger vehicle loans.

However, high earners face limitations. The benefit begins to phase out when modified AGI exceeds $100,000 for single filers ($200,000 for married couples filing jointly).

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Watch the video below for the full breakdown. Unsure if you qualify for this write-off? Contact our office for a quick review.

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