The New Tax Deduction for Car Loans Isn’t As Great As It Sounds. Here’s How It Works. The New Tax Deduction for Car Loans Isn’t As Great As It Sounds. Here’s How It Works.

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Personal loan interest hasn’t been deductible since the Tax Reform Act of the ’80s. President Donald Trump changed that when he signed the One Big Beautiful Bill Act into law in July. The legislation didn’t have an easy trip to the Oval Office, though. The House approved the measure in a 218-214 vote after the Senate approved it by a 51-50 vote. Now, eligible Americans can deduct up to $10…