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 acquired after September 27, 2017
1st tax year $14,900 1st tax year $18,100
2nd tax year $16,100 2nd tax year $16,100
3rd tax year $9,700 3rd tax year $9,700
Each succeeding tax year $5,760 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.
Receive Free financial tips & Tax Alerts!
"*" indicates required fields
Your business should generally maximize current year depreciation write-offs for newly acquired assets. Two federal tax breaks can be a big help in achieving this goal: first-year Section 179 depreciation deductions…
If your small business is strapped for cash (or likes to save money), you may find it beneficial to barter or trade for goods and services. Bartering isn’t new —…
For many business owners, taxes often represent a hurdle to clear rather than a strategic asset to leverage. However, those who look beyond mere compliance can unlock the transformative power…