The Internal Revenue Service recently revised the depreciation limits for business-use passenger automobiles, trucks and vans first placed in service during calendar year 2016. The updated amounts under Revenue Procedure 2016-23 are in table format below.
The maximum depreciation limits under Code Sec. 280F for passenger automobiles first placed in service during the 2016 calendar year:
Passenger Automobiles
1st tax year $3,160
2nd tax year $5,100
3rd tax year $3,050
Each succeeding tax year $1,875
The maximum depreciation limits under Code Sec. 280F for trucks and vans first placed in service during the 2016 calendar year:
Trucks and Vans
1st tax year $3,560
2nd tax year $5,700
3rd tax year $3,350
Each succeeding tax year $2,075
When bonus depreciation rules apply, the first year limitation is $11,160 for personal automobiles and $11,560 for trucks and vans. In both cases, 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
If you made significant gifts to your children, grandchildren or other heirs last year, it’s important to determine whether you’re required to file a 2024 gift tax return. And in…
Even if you’re single and have no children, having an estate plan helps ensure your final wishes are clearly documented and respected. Estate planning isn’t solely about passing assets on…
As a business owner, you may be eligible to claim home office tax deductions that will reduce your taxable income. However, it’s crucial to understand the IRS rules to ensure…
