To all old-timers out there. Was there a time when a taxpayer could deduct auto loan interest from their taxes. My memory says yes, maybe back in the 60s, but my memory isn’t what it used to be.
Yes, prior to 1987, the U.S. tax code allowed individuals to deduct personal interest expenses, including interest on car loans, as itemized deductions. This changed with the Tax Reform Act of 1986, which eliminated the deduction for personal interest expenses, such as those from car loans and credit cards. Since then, car loan interest has qenerally not been deductible for personal use vehicles However, if you're self-employed or a business owner and use your vehicle for business purposes, you may be eligible to deduct the portion of car loan interest that corresponds to your business use.
To all old-timers out there. Was there a time when a taxpayer could deduct auto loan interest from their taxes. My memory says yes, maybe back in the 60s, but my memory isn’t what it used to be.
Yes, prior to 1987, the U.S. tax code allowed individuals to deduct personal interest expenses, including interest on car loans, as itemized deductions. This changed with the Tax Reform Act of 1986, which eliminated the deduction for personal interest expenses, such as those from car loans and credit cards. Since then, car loan interest has qenerally not been deductible for personal use vehicles However, if you're self-employed or a business owner and use your vehicle for business purposes, you may be eligible to deduct the portion of car loan interest that corresponds to your business use.
Reagan stopped that
Tax Reform Act of 86 changed everything.