New 2025 Tax Breaks: Higher Estate Tax Exemptions + Auto Loan Interest Deductions Explained

Big Changes in Taxes: What You Need to Know in 2025

Hello, friends! Today, we’re going to talk about some important changes in taxes that might affect you and your family. These changes are part of a new law called the "One Big Beautiful Bill Act" (OBBBA). Let’s break it down in a simple way so everyone can understand.

Estate Tax: What Is It and What’s New?

When someone passes away, their belongings like houses, cars, and money are called their "estate." The government usually takes a part of this estate as a tax, known as the estate tax.

In the Philippines, there’s good news! The estate tax amnesty has been extended until June 14, 2025. This means families have more time to settle estate taxes without extra penalties and interests

In the United States, the OBBBA has increased the amount of money that can be passed on without paying estate taxes. Now, individuals can leave up to $15 million, and married couples can leave up to $30 million to their heirs without paying estate taxes. This change helps families keep more of their loved ones' assets.
 

Car Loans: Saving Money on Interest

Many people buy cars using loans, which means they borrow money and pay it back over time with extra money called "interest." The OBBBA has a new rule that allows people to deduct up to $10,000 of the interest they pay on car loans from their taxable income. This means you could pay less in taxes if you have a car loan.

This deduction is available for cars assembled in the U.S. and is retroactive from January 1, 2025. It’s a great way to save money if you’re planning to buy a car.

Why These Changes Matter

These tax changes are designed to help people keep more of their money. By increasing the estate tax exemption, families can inherit more without paying taxes. By allowing deductions on car loan interest, car buyers can save money on their taxes.

These changes can make a big difference in people’s lives, helping them save money and plan for the future.

What Should You Do?

• Stay Informed: Keep up with the latest tax laws to understand how they affect you.
• Plan Ahead: If you’re thinking about buying a car or managing an estate, consider these new tax rules.
• Consult a Professional: Talk to a tax advisor to see how you can benefit from these changes.