Car Loan Interest Deduction

Document Headings Document headings vary by document type but may contain the following: the agency or agencies that issued and signed a document the number of the CFR title and the number of each part the document amends, proposes to amend, or is directly related to the agency docket number / agency internal file number the RIN which identifies each regulatory action listed in the Unified Agenda of Federal Regulatory and Deregulatory Actions See the Document Drafting Handbook for more details. Department of the Treasury Internal Revenue Service 26 CFR Parts 1 and 301 [TD 10054] RIN 1545-BR75 ( printed page 57214) AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Final regulations. SUMMARY: This document contains final regulations regarding the deduction for certain taxpayers for an amount up to $10,000 of qualified passenger vehicle loan interest. This document also contains final regulations regarding new information reporting requirements for certain persons who, in a trade or business, receive from any individual interest aggregating $600 or more for any calendar year on a specified passenger vehicle loan, including applicable penalties for failures to file information returns or furnish payee statements as required. These regulations affect taxpayers that may deduct qualified passenger vehicle loan interest, and also persons subject to these information reporting requirements. DATES: Effective date: The final regulations are effective on November 9, 2026. Applicability date: For dates of applicability, see §§ 1.163-16(i) and 1.6050AA-1(i). FOR FURTHER INFORMATION CONTACT: Riston Escher of the Office of Associate Chief Counsel (Income Tax & Accounting) at (202) 317-7003 (not a toll-free number). SUPPLEMENTARY INFORMATION: Authority This document contains amendments that add new regulations to the Income Tax Regulations ( 26 CFR part 1 ) under sections 163 and 6050AA of the Internal Revenue Code (Code), as amended and enacted, respect…