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IRS Updates Vehicle Depreciation Limits for Automobiles

The Internal Revenue Service recently revised the depreciation limits for business-use passenger vehicles first placed in service during calendar year 2019 and the amounts of income inclusion for lessees of passenger automobiles first leased in 2019. The updated amounts under Revenue Procedure 2019-26 are in table format below.

For passenger automobiles to which the Sec. 168(k) additional (bonus) first-year depreciation deduction applies and that were, and placed in service during calendar year 2019, the depreciation limits are as follows:

Passenger Automobiles (includes trucks and vans)

acquired before September 28, 2017

1st tax year: $14,900
2nd tax year: $16,100
3rd tax year: $9,700
Each succeeding tax year: $5,760

acquired after September 27, 2017

1st tax year: $18,100
2nd tax year: $16,100
3rd tax year: $9,700
Each succeeding tax year: $5,760

When no Sec. 168(k) additional (bonus) depreciation rules apply, the first-year limitation is $10,100 for the first year. In this case, limitations for subsequent years remain the same. The professionals in our office can answer the questions you may have on the updated auto depreciation limits, call on us today.