Verified: Many people in the U.S. didn't know this about the IRS, your wallet will thank you

Many taxpayers in United States don't know they can enjoy a very useful advantage when buying a vehicle for personal use. Although it's not widely known, there is an option that allows certain Americans to deduct part of the expenses associated with this purchase, especially if they've taken out a loan.

This measure, endorsed by the IRS and also linked to Social Security regulations in United States, represents relief for your wallet. When a vehicle is purchased and financed through a loan, the interest paid on this credit is normally not deductible if the car is used only for personal purposes.

Ssa and the IRS give you this advantage when buying a car for personal use

However, there are exceptions and nuances that many people are unaware of. For example, if the car is also used partially for work-related or business activities, taxpayers can deduct a proportional part of that interest. In this case, it's essential to keep a clear record of the miles (kilometers) traveled for professional and personal use.

In addition, if the vehicle is used for medical activities, moving (for active-duty military members), or assisting people with disabilities, additional deductions may also apply. The key is to identify the purpose of the measure and properly justify the use of the car beyond personal reasons.

This can help you reduce your tax bill

Another advantage that few people know is that certain taxes paid when purchasing the vehicle (state and local sales taxes) can be included as a deduction on the IRS return. This applies if you choose to deduct sales taxes instead of state income taxes.

Thus, a significant part of what you paid when buying the car can help you reduce your tax bill. In addition, some states offer other deductions on vehicle purchases, especially if they're electric or hybrid vehicles.

It's advisable to review these deductions

These incentives can vary greatly from place to place. In many cases, they mean tax benefits, direct discounts, or additional credits that Americans can take advantage of without complications.

All in all, if you're thinking about buying a car or you've already done so and taken out a loan, it's highly recommended to review these available deductions. Although not everyone can apply for each one, it is possible to benefit from some advantage if you meet certain requirements. Social Security and the IRS offer specific guides so you don't miss the opportunity.