(And Why 2025 Might Be Your New Favorite Tax Year)**
If you’ve ever stared at your car payment and thought,
“Wow, this interest should really come with a consolation prize…”
—good news.
Starting in 2025, it might.
And no, this is not a joke, a rumor, or something a car salesman whispered to you while trying to upsell the upgraded trim package. This is a real part of the new federal tax law lovingly (and hilariously) named the One Big Beautiful Bill Act. Yes, that’s the actual name. We’ll pause while you absorb that.
But here’s the headline:
You may soon be able to deduct up to $10,000 per year in interest on your car loan—even if you don’t use the car for business at all.
That’s right. Personal cars. Personal driving. Personal errands. Personal coffee runs.
For studio owners, women entrepreneurs, and business builders who put big energy into their work (and deserve actual returns on that energy), this could be a game-changing deduction.
And at pyop accounting, where we believe your business should support your life—not drain it—this is the kind of update we want on a billboard.
Under the old rules, the car loan interest deduction was like an exclusive club:
• self-employed? yes
• business vehicle? yes
• everyday human just trying to live? absolutely not
But starting in 2025, the rules get a makeover.
That’s it.
No mileage logs. No business-use percentage.
Just: Was it built here? Great. Deduct away.
Ford? Yes.
Tesla? Yes.
Chevy? Yes.
Any other U.S.-assembled car? Most likely yes.
If the window sticker says “Final Assembly Point: USA,” your tax return might smile back at you next year.
Before you start joyriding in celebration, here’s what you need to know:
So if your household is running a mini-fleet of U.S.-assembled cars, sadly, you don’t get a pile of deductions for each one. One return, one $10k cap.
Your lender’s:
Keep it. Screenshot it. Email it to yourself. Tattoo it on your soul if you must.
States love to do their own thing. Sometimes very aggressively.
Your state may follow this rule… or completely ignore it.
Because when you’re building a creative, community-centered studio, every dollar you keep matters.
You’re not just running a business. You’re building:
So if the IRS wants to hand you a deduction?
You take the deduction.
This credit doesn’t just save money—it supports the long-term financial health of your studio and your household.
Your business’s job is to support you, and smart tax planning is a major part of that.
If you’re thinking about buying a car…
❗check the window sticker
❗confirm U.S. assembly
❗keep every interest document
If you already own a qualifying vehicle…
❗start collecting your interest statements now
This is the kind of tax break that’s easy to qualify for and even easier to miss if you’re not paying attention.
And we’re not here for missed opportunities—especially the money-saving kind.
Please follow us on Facebook and Instagram. Please make sure to check out our blog and our website link below. Subscribe to our YouTube channel and hit the bell to be notified when we post. You can email me at donna@pyopaccounting.com.
Donna Bordeaux, CPA with PYOPAccounting.com
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.
