Refinanced loan.

If your prior loan that had QPVLI is later refinanced, interest paid on the refinanced amount is generally eligible for the deduction, so long as the new loan is secured by a first lien on the APV with respect to which the refinanced loan was incurred. The loan amount is limited to the outstanding balance of the refinanced loan as of the date of the refinancing.

Applicable passenger vehicle.

In general, an APV is any vehicle that meets the following conditions:

The original use of the vehicle starts with you (a used vehicle does not qualify),

The vehicle is a motor vehicle manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails),

The vehicle has at least 2 wheels,

The vehicle is a car, minivan, van, SUV, pickup truck, or motorcycle, and has a gross vehicle weight rating of less than 14,000 pounds, and

The vehicle has undergone final assembly in the United States.

Final assembly in the United States.

The location of final assembly will be listed on the vehicle information label attached to each vehicle on a dealer’s premises. You can rely on that information label. You can also rely on the vehicle’s plant of manufacture as reported in the VIN to determine whether the vehicle has undergone final assembly in the United States. The VIN Decoder website for the National Highway Traffic Safety Administration provides plant of manufacture information. You can follow the instructions on that website to see if your vehicle’s plant of manufacture is located in the United States.

Personal use.

Personal use means a use other than:

Use in any trade or business (except for the use in the trade or business of performing services as an employee), or

For the production of income.

You are considered to have purchased an APV for personal use if, at the time you incur a loan to purchase an APV, you expect that the APV will be used for personal use for more than 50% of the time by you and/or any combination of individuals with certain relationships to you, including your spouse; your or your spouse’s child, grandchild, father, mother, brother, or sister; as well as an individual who has the same main home as you and is a member of your household.

Example.

You purchase an APV that you expect to use to earn income as a driver for a rideshare service for 15% of the time you expect to own the APV. You expect to use the APV for personal use for the remaining 85% of the time. You are considered to have purchased your APV for personal use.

Interest deducted elsewhere on your return instead of on Schedule 1-A.

If some or all of the QPVLI qualifies to be deducted in more than one place on your return, you may choose where to report the deduction, but you cannot deduct the same amount more than once. For example, if you deducted some or all of the interest that you paid or accrued on your loan as interest on Schedule C, Schedule E, or Schedule F, then you can’t deduct that same interest as QPVLI on Schedule 1-A.

Line 22.

Enter the VIN(s) of the APV(s) on line 22, column (i). If you need to report more than two VINs, attach a statement to your return showing the information required on line 22.

Next, for each entered VIN, enter the QPVLI paid or accrued on the loan originated for the purchase of that APV. On line 22, column (ii), enter the amount of the QPVLI, if any, that was deducted elsewhere on your return (for example, on Schedule C, Schedule E, or Schedule F). On line 22, column (iii), enter the total amount of the QPVLI paid or accrued on the loan during the taxable year minus the amount on line 22, column (ii).

Line 24.

The amount on line 24 cannot be more than $10,000, the maximum amount of the QPVLI deduction.

Line 27.

If the amount on line 27 is zero or less, the amount of your QPVLI reported on line 24 is not reduced. Skip lines 28 and 29 and enter the amount from Schedule 1-A, line 24, on Schedule 1-A, line 30.