All articles tagged with #tax deduction
The IRS announced that new cars assembled in the U.S. purchased from 2025 to 2028 may qualify for a tax deduction on car loan interest, with eligibility determined by the vehicle's final assembly location, potentially benefiting middle-income households and supporting domestic auto production.
The IRS has announced a new tax deduction allowing taxpayers to deduct up to $10,000 in interest on loans for new, American-made vehicles purchased after Dec. 31, 2024, potentially saving car buyers significant money on their 2026 taxes, with specific rules and a public comment period open until Feb. 2, 2026.
The IRS announced that new cars assembled in the US purchased from 2025 to 2028 may qualify for a tax deduction on car loan interest, contingent on final assembly location, aiming to boost domestic auto manufacturing under Trump’s policy. About 14 of the top 25 models sold in 2024 are US-assembled, with potential for millions of qualifying vehicles, though some models assembled in multiple countries may not qualify.
The IRS announced that the standard mileage rate for business use of vehicles will increase to 72.5 cents per mile in 2026, while rates for medical and moving purposes will slightly decrease, reflecting updated cost data and inflation adjustments. These rates apply to various vehicle types, including electric and hybrid cars, and are used to calculate deductible vehicle expenses for tax purposes.
Delaying charitable donations until 2026 can provide significant tax benefits, allowing single filers to save up to $1,000 and married couples up to $2,000 on their taxes, due to a new provision in the tax law that applies to those who take the standard deduction.
The Treasury Department has released a list of 68 jobs eligible for a new tax deduction under President Trump's 'no tax on tips' pledge, covering various sectors including food service, entertainment, hospitality, home services, personal care, recreation, and transportation, with regulations to be published soon.
The US law now allows Americans to deduct interest on new car loans up to $10,000, primarily benefiting high-income buyers of luxury vehicles and potentially encouraging larger, more expensive car purchases, which may worsen transportation costs and environmental impacts, while offering limited benefits to average consumers.
A new tax law allows for a tax deduction on interest paid on loans for new, U.S.-assembled vehicles, potentially saving buyers thousands of dollars and possibly boosting auto sales, though its overall impact remains uncertain.
The new temporary tax deduction for interest on car loans, applicable for purchases from 2025 to 2028, is limited to new, US-assembled vehicles for personal use, with a cap of $10,000 on interest deductions and income-based restrictions that may limit benefits for higher earners. The deduction excludes loans from family, leasing, or used vehicles, and is unlikely to benefit those with higher tax rates or low tax liabilities. The actual benefit may be modest, especially considering potential vehicle price increases due to tariffs.
Senate Republicans' latest bill includes a special tax deduction increase for Alaskan whaling captains, raising the whale-hunting expense deduction from $10,000 to $50,000, reflecting longstanding Alaskan interests amidst broader legislative negotiations on tax, healthcare, and energy policies.
Senator Mullin is close to an agreement on increasing the SALT deduction cap, facing opposition from House Republicans, while other legislative battles include GOP efforts to cut funding for the CFPB, debates over Iran military actions, and appropriations for government agencies. The legislative process is complex, with negotiations and procedural hurdles shaping the final bills.
Senate Majority Leader John Thune faces internal conflicts over key provisions in the upcoming tax-and-spending package, including Medicaid funding, state-and-local-tax deductions, and green energy credits, amid ongoing negotiations and disagreements within the Republican Party.
Fox News may be able to take a tax deduction from the $787.5 million payout to Dominion Voting Systems to settle defamation claims, potentially saving the company up to $213 million. While Dominion's owner claims injury, Staple Street Capital, which bought a majority stake in the voting machine maker for $38.3 million in 2018, stands to make an astounding 1,500 percent return on that deal. Dominion is still suing others who accused it of electoral wrongdoing, including Newsmax and MyPillow founder Mike Lindell. The settlement was negotiated by a mediator who held some 50 conversations with Fox and Dominion representatives while on vacation in Romania.