My parents and I are US citizens and we are confused about who gets to claim the car loan interest deduction. We have a Mazda CX-50 that we bought in 2025 for personal use. My dad is the primary owner and I am the co-signer. However the payments were made by my mom and me. My dad files jointly with my mom, so can they take the car loan interest deduction even though my mom made the payments with her bank account? She used my dad’s Mazda account to make the payments. Also can I take any deduction for the amounts that I paid as a co-signer? Thank you!
Edit: I am a co-buyer with my dad.
Confused About Car Loan Interest Deduction
byu/SunriseGarden7 intax
Posted by SunriseGarden7
2 Comments
You can’t claim the deduction, because you do not own the vehicle.
Your parents can claim the deduction. Your parents *probably* can include the amounts that you paid, and say that your payments are a gift to them.
Was the car new? Was the US its final country of assembly?
If the answer to either of these is no, then no one can claim the deduction. If the answer to both is yes, than u/sorator is correct, as long as they file MFJ and their AGI allows them to qualify.