H.R. 1, P.L. 119-21, also known as the One Big Beautiful Bill Act (OBBBA), established new Sec. 6050AA. This section introduces rules concerning interest received in a trade or business from individuals on certain passenger vehicle loans.
The proposed regulations issued on Dec. 31, 2025, provide guidance on the new deduction for car loan interest, including information on who can take the deduction and what lenders need to know.
Notice 2025-57, Transitional Guidance Regarding Returns Relating to Certain Interest on