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 final regulations issued on Sept. 8, 2026, finalize guidance on the deduction for qualified passenger vehicle loan interest, including information on who can take the deduction and establishes reporting requirements for lenders. The final regulations are effective Nov. 9, 2026.
The proposed