Sponsor spotlight: The new-car interest deduction — what you need to know

For years, the tax code trend was to reduce the amount of interest that may be deducted on your tax return. Until recently, it really only allowed interest deductions as an itemized deduction on qualified residences and vacation property. That is changing now with the passage of the OBBB Act and the introduction of a new-car interest tax break. Here is what you need to know.

Background

Congress and the Executive office traditionally use tax breaks on interest to drive consumer behavior. The government historically likes us to own homes and now the government is encouraging us to buy new vehicles with final assembly in the United States. It is an attempt to encourage manufacturers to migrate assembly back to the U.S.

Details of what qualifies • New not used vehicles • Personal use; n