IRS Offers Compliance Relief on Auto Loan Interest Reporting

Out of the roughly 2.4 million cars sold last year, more than 80 percent were financed.

A person walks past a used car lot in Los Angeles on Jan. 31, 2023. Mario Tama/Getty Images

The IRS is offering relief to businesses required to report car loan interest receipts under the One Big Beautiful Bill Act, the agency said in an Oct. 21 statement.

The One Big Beautiful Bill Act, signed into law by President Donald Trump on July 4, includes a provision on auto loan interest paid by customers, allowing people who bought vehicles with final assembly in the United States to deduct up to $10,000 in car loan interest from their taxable income.