ISLA Accompting

💡 No Tax on Car Loan Interest (2025–2028)

Starting in 2025, the One Big Beautiful Bill (OBBB) introduces a new benefit for car owners — the “No Tax on Car Loan Interest” provision under Section 70203.

Here’s what you need to know:

🚗 What’s changing?
✅ From 2025 through 2028, interest paid on qualifying car loans will no longer count as personal interest — meaning you can deduct up to $10,000 per year.
✅ Applies to personal-use vehicles purchased after Dec. 31, 2024.
✅ Eligible vehicles must:

Be originally purchased by the taxpayer

Have final assembly in the United States

Have a gross weight under 14,000 lbs
✅ Refinanced loans may qualify, as long as the amount does not exceed the original balance.
✅ The VIN must be reported on your tax return.

💰 Income limits apply

📌 What this means for you:
If you’re planning to buy a new car for personal use, 2025–2028 could be the perfect window to take advantage of this temporary deduction.

📞 Need help determining eligibility?
Our team at ISLA Accompting can guide you through the new rules and ensure you claim every available deduction.

🔗 Learn more: www.islaccounting.com



💡 No Impuestos sobre Intereses de Préstamos de Automóviles (2025–2028)

A partir de 2025, la Ley One Big Beautiful Bill (OBBB) introduce un nuevo beneficio para los propietarios de vehículos: la eliminación del impuesto sobre los intereses de préstamos de automóviles personales (Sección 70203).

🚘 ¿Qué cambia?
✅ Entre 2025 y 2028, los intereses pagados por préstamos de automóviles personales no se considerarán interés personal, lo que permite una deducción de hasta $10,000 por año.
✅ Aplica solo a vehículos para uso personal, comprados después del 31 de diciembre de 2024.
✅ Vehículos elegibles deben:
* Ser adquiridos originalmente por el contribuyente
* Tener ensamblaje final en los EE. UU.
* Pesar menos de 14,000 libras
✅ Los préstamos refinanciados pueden calificar si no exceden el monto original.
✅ El número VIN del vehículo debe incluirse en la declaración de impuestos.

💰 Límites de ingresos son aplicables

📌 Qué significa para usted:
Si planea comprar un automóvil nuevo para uso personal, el período 2025–2028 puede ser ideal para aprovechar esta deducción temporal.

📞 ¿Necesita ayuda?
El equipo de ISLAAccompting está listo para ayudarle a entender cómo aprovechar este nuevo beneficio fiscal.

🔗 Más información: www.islaccounting.com

In a world where you can buy a Peloton with one click and spend $17 on a smoothie, it's no surprise Americans love credit cards. But billionaire investor Warren Buffett? Not a fan.

Speaking at the Nebraska Forum back in 1999, the Berkshire Hathaway CEO told a room full of students that if they wanted to get ahead financially, the answer was simple: avoid credit cards altogether. "Just forget about them," he said.

That might sound old-fashioned, especially coming from a man worth billions. But Buffett wasn't moralizing — he was just doing the math. "We're in various businesses that issue credit cards. The American public loves credit cards," he said. "But if you start revolving debt on those credit cards, you can't make any progress in your financial life."

He didn't need to exaggerate. Interest rates alone made the point. Buffett said carrying a balance meant paying around 18% to 20% — and if you're borrowing at those rates, you're not just treading water, you're sinking.

"You can make a lot of money lending it out at 18 or 20%," he added, "but you don't want to be on the side of the equation that's always behind in life."

To make it painfully clear, he laid out the scenario: fall behind by $10,000, and carry that balance at high interest, and, in his words, "you'll never get out of it."

This wasn't some abstract hypothetical for Buffett. He shared that when he was young, he'd managed to save $10,000 by the time he graduated — a modest sum that became, in his view, the foundation for everything he built later. Getting ahead early gave him room to grow.

But if you start out behind — especially carrying high-interest debt — the math starts working against you fast. That's not just a delay. That's a drag.

And that's the trap. A balance that seems manageable in the moment becomes a long-term anchor. By the time the bills, the kids, the roof repairs, and the car troubles pile up, the hole is already dug — and you're working just to get back to zero.

Buffett leaned into a bit of wisdom from colleague Charlie Munger to drive it home: "All I want to know is where I'm going to die so I never go there."

Financially, he said, you have to think the same way — avoid the places that bury people.

He knows, because they write to him. "I get about a dozen letters a day from people who are having terrible problems," Buffett said. In nearly every case, the root cause is one of two things: catastrophic health issues or credit card debt. The first, he said, is bad luck. The second is avoidable.

Some tell him they've already gone bankrupt once and now they're drowning in interest again —unable to touch the principal. "That problem is avoidable," he said. "Credit card debt is something you bring on yourself."

That's why he believes the best move is not to dig the hole in the first place. "It's way easier to stay out of trouble than to get out of trouble," he told the students. "And I guarantee you — if you run a big credit card debt, you'll be in trouble probably the rest of your life."

His advice wasn't about perfection or wealth. It was about positioning. Get yourself to a place where your money is working for you — where you're collecting interest instead of paying it. Even a small head start matters.

"If you can't pay for it, don't buy it," Buffett said. "Get yourself in a position where you can pay for anything."

Not exactly what Visa's marketing team wants to hear — but probably what most Americans need to.

These are great new for our teachers, firefighters, postmen, policemen, and all public workers! https://www.facebook.com/share/1HRDavnCaX/

Senate passes Social Security benefits increase for some public workers The Social Security Fairness Act passed by a vote of 76-20 in the early hours of Saturday.