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.