Hi all,
I have a question about the BBB bill loan interest tax deduction for new US made cars.
The BBB text says that a vehicle qualifies if it is made in the US and is only good if it has its "first lien". All articles online say used cars do not qualify. If one does a lease buyout though with a lien, technically a leased car never has a lien against it. Buying out that car with a loan does put it's first lean on it.
Other qualifiers being that to qualify for the deduction one needs to be the first "user" of said vehicle. If you lease a vehicle and buy it out, one is certainly a first user.
This is not the intention of the bill, but I feel it is arguable that this would qualify.
I can't seem to find a tax attorney that knows anything about this, I am about to buy out my lease and it would be great to qualify for that.
Even if the IRS doesn't consider it "new", the bills text doesn't say anything about "used" cars, it only states that it has to be the first lien on the vehicle.
Thank for any thoughts on this.
