Vernoia, Enterline + Brewer, CPA LLC

vanThe IRS has released the inflation-adjusted limitations on depreciation deductions for business-use passenger automobiles, light trucks, and vans first placed in service during calendar year 2016. Where bonus depreciation is allowed, the first-year depreciation limit is $8,000 higher than the general non-bonus depreciation limits.

The maximum depreciation limits for passenger automobiles placed in service during the 2016 calendar year are: $3,160 for the first tax year; $5,100 for the second tax year; $3,050 for the third tax year; and $1,875 for each succeeding tax year. Where bonus depreciation rules apply, the first-year limitation for passenger automobiles is $11,160. Limitations for subsequent years remain the same.

The maximum deprecation limits for trucks and vans placed in service during the 2016 are: $3,560 for the first tax year; $5,700 for the second tax year; $3,350 for the third tax year; and $2,075 for each succeeding tax year. Where bonus depreciation rules apply, the first-year limitation for trucks and vans is $11,560. Limitations for subsequent years remain the same.

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