Why the US Dollar Slumped to a 50-year-low Vantage with Palki Sharma
Why the US Dollar Slumped to a 50-year-low | Vantage with Palki Sharma | N18G
As US President Donald Trump and billionaire Elon Musk spar in public - the state of the US economy is fuelling concerns. Amid volatile remarks, economic policy reversals, and investor concerns, the US dollar has lost over 10% in value—its worst performance since 1973. Global confidence in American debt and currency appears to be waning, with rising interest costs and a downgraded credit rating intensifying the pressure.
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JPMorgan Tells Fintechs to Pay Up for Customer Data Access
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IPL Valuation Hits 18.5 Bn Dollar, Up 12.9 Per Cent, Fueled By Media Rights, Sponsors, And Fan Engagement
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Time of India
2 hours ago
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Millions of people receive a federal tax deduction for the interest they pay on home loans. Under President Donald Trump's new tax-cut law, many people for the first time also could claim a tax deduction for interest on their vehicle loans. The new tax break will be available even to people who don't itemize deductions. But there are some caveats that could limit its reach. The vehicles must be new, not used. They must be assembled in the U.S. And the loans must be issued no sooner than this year, to list just a few qualifications. Here are some things to know about the new auto loan interest tax deduction: Candidate Trump promised an auto loan interest tax break Trump pledged while campaigning last year to make interest on car loans tax-deductible. He said it would make car ownership more affordable and "stimulate massive domestic auto production." The idea made it into the big tax-cut bill passed by Congress, which Trump signed into law July 4. The law allows taxpayers to deduct up to $10,000 of interest payments annually on loans for new American-made vehicles from 2025 through 2028. It applies to cars, motorcycles, sport utility vehicles, minivans, vans and pickup trucks weighing less than 14,000 pounds, a threshold referred to as light vehicles. But it only applies to vehicles purchased for personal use, not for fleets or commercial purposes. The tax break can be claimed starting on 2025 income tax returns. But the deduction phases out for individuals with incomes between $100,000 and $150,000 or joint taxpayers with incomes between $200,000 and $250,000. Those earning more cannot claim the tax break. Millions of buyers could benefit, but millions of others will not U.S. automobile dealers sold 15.9 million new light vehicles last year, a little over half of which were assembled in the U.S, according to Cox Automotive. It says around 60 per cent of retail sales are financed with loans. 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The tax savings would be less on a loan at 6.5 per cent , which is the rate figured into calculations by the American Financial Services Association, a consumer credit industry trade group. Some people also could see a reduction in state income taxes Whereas the tax deduction for home loan interest can be claimed only by people itemizing on their tax returns, Congress wrote the deduction for auto loan interest so that it can apply to all taxpayers, including those claiming the standard deduction. On a tax form, the auto loan deduction will come before the calculation of a taxpayer's adjusted gross income. That's an important distinction, because many states use a taxpayer's federal adjusted gross income as the starting point for figuring their state income taxes. If that income figure is lower, it could reduce the state taxes owed. The verdict is out on whether the tax break will boost sales At Bowen Scarff Ford in Kent, Washington, customers started asking about the auto loan tax deduction before Congress had even taken a final vote on the tax-cut bill, said General Manager Paul Ray. So he decided to promote it on the dealer's website. A website ribbon exclaims: "CAR LOAN TAX DEDUCTION NOW AVAILABLE" while also promoting an electric vehicle tax credit that is ending soon as a result of Trump's tax-cut law. "I think it's going to help incentivize vehicle purchases through this year," Ray said. Celia Winslow, president and CEO of the American Financial Services Association, concurred: "For some people deciding - should I buy it, should I not - this could be something that tips the scale." Others remain skeptical. According to Smoke's math, the average annual tax savings is smaller than a single month's loan payment for a new vehicle. "I don't think it moves the needle on somebody on the fence of buying a new vehicle or not," Smoke said. "But I think it could influence their decision to finance that vehicle instead of paying cash or instead of leasing a vehicle."
