What was the last year you could deduct the interest from credit cards and car loans?
abaresque319
Please let me know. I think it it was former President Bush or Reagan that repelled it.
I did not mean to say it was the President, I was trying to refer to which administration it happened under to give a time frame. Sorry!
Please let me know. I think it it was former President Bush or Reagan that repelled it.
I did not mean to say it was the President, I was trying to refer to which administration it happened under to give a time frame. Sorry!
September 28th, 2007 at 11:02 am
You can still deduct those to the extent they are business related.
You just can no longer claim them if they are personal. Personal deductions went away more than 10 years ago.
October 1st, 2007 at 4:19 am
The deduction for personal interest, including interest on charge card purchase of consumer items, was phased out by the Tax Reform Act of 1986. Congress believed that the deduction for personal interest encouraged people to consume and that such consumption was at the cost of savings. At the time, the American savings rate was declining and, unfortunately, the private savings rates continues to remain low. To eliminate the significant disincentive to savings, Congress repealed the itemized deduction for personal interest other than mortgage interest.
Although often referred to as the second of the two “Reagan tax cuts” (the Kemp-Roth Tax Cut of 1981 being the first), the bill was actually officially sponsored by Democrats, Richard Gephardt of Missouri in the House of Representatives and Bill Bradley of New Jersey in the Senate.
Hope this helps.
October 1st, 2007 at 11:46 pm
No President repealed it; Congress did. Only Congress can repeal a law; the President cannot.
October 3rd, 2007 at 5:14 am
It was 1981. Effective the 1982 calendar year, we could not deduct it any longer. President Reagan did not sign an executive order repealing it. Congress repealed it. Our senators and reps not serve their constituents. They just want their retirement. That’s why they do not repeal the alternative minimum tax. They put a “patch” on it to deceive us, the voting public, in to thinking they are sincerely addressing the problem.