🚗 OBBB Hack: Car Loan Interest or Business Vehicle Write-Offs — Which Saves You More?

New IRS rule alert!
Should you buy that shiny new ride in your own name… or through the business?
Let’s see what the gorillas — and Hedgi — have to say.

🚦 What’s Changed (And Why It’s Bananas)

Before the OBBB, you had a tough choice:

• Buy personally: Maybe get some mileage reimbursement

• Buy through the business: Depreciation, Section 179, interest — but with lots of paperwork and sometimes pricier insurance

Now, thanks to OBBB (2025–2028):

• You can buy the car personally (as long as it’s new and built in the U.S.)

• Deduct up to $10,000/year in loan interest on your personal return

• And still get the business mileage deduction (currently $0.67/mile)

All you have to do is…

• Track your business miles (Hedgi can help!)

• Meet the income limits (starts phasing out at $100K/$200K)

• Report the VIN

• Not double-dip (don’t take depreciation & interest on the same car)

🦍 Strategy: Personal Interest Deduction + Mileage Reimbursement = Easy Win

For many S-Corp or LLC owners, here’s the play:

1. Buy the new car in your own name

2. Deduct interest up to $10K/year (if under the AGI threshold)

3. Track business mileage for a separate deduction

4. Skip the commercial auto hassle, higher insurance, and business loan headaches

Simple, audit-proof, and you still get your new car smell.

🧠 Gotchas & Gorilla Warnings

• Only interest is deductible — principal is NOT

• Car must be new and assembled in the U.S.

• Income phaseout: $100K (single), $200K (MFJ)

• VIN must be reported on your tax return

• No double-dipping: If the biz claims bonus depreciation/Section 179, no personal interest deduction

🦔 How Hedgi Makes This (Almost) Too Easy

• Track business mileage automatically

• Store loan docs, VIN, and proof for easy access

• Run a side-by-side tax savings analysis (“Should I buy personally or through my S-Corp?”)

• Help you set up a compliant accountable plan if you need mileage reimbursement

🚗 Bottom Line

For most SMBs, the new law means:
Personal purchase + interest deduction + business mileage = more tax savings and less red tape.

Let Hedgi run the numbers for you — and keep your new ride in the fast lane with the IRS.