Summary
The Department of the Treasury and the IRS announced temporary relief measures to help businesses and lenders adjust to new car loan interest reporting requirements under President Donald Trump's One Big Beautiful Bill Act. These measures include allowing taxpayers to deduct interest on certain car loans and providing simplified reporting options.
Key Facts
- The IRS is offering temporary relief for businesses and lenders required to report car loan interest payments.
- The One Big Beautiful Bill Act allows taxpayers to deduct interest on qualified new car loans.
- To qualify, vehicles must be assembled in the U.S. and loans must start between December 31, 2024, and January 1, 2029.
- Lenders can meet reporting requirements using online portals or statements without facing penalties in 2025.
- The rule applies to lenders who receive at least $600 per year in interest from a borrower.
- Borrowers should keep vehicle identification numbers (VINs) and proof of U.S. assembly for eligibility claims from 2025 to 2028.
