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LUXURY PASSENGER DEPRECIATION

BENDER
Level 1

What is the maximum depreciation for 2019 that I can take on a new Lexus (less than 6,000 lbs) used 100% for business ???

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mdavolio
Employee
Employee

The Tax Cuts and Jobs Act changed depreciation limits for passenger vehicles placed in service after Dec. 31, 2017.

If the taxpayer doesn’t claim bonus depreciation, the greatest allowable depreciation deduction is:

  • $10,000 for the first year
  • $16,000 for the second year
  • $9,600 for the third year
  • $5,760 for each later taxable year in the recovery period

If a taxpayer claims 100 percent bonus depreciation, the greatest allowable depreciation deduction limit is:

  • $18,000 for the first year
  • $16,000 for the second year
  • $9,600 for the third year
  • $5,760 for each later taxable year in the recovery period

 

https://www.irs.gov/newsroom/changes-to-depreciation-limits-on-luxury-automobiles

 

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1 Reply 1
mdavolio
Employee
Employee

The Tax Cuts and Jobs Act changed depreciation limits for passenger vehicles placed in service after Dec. 31, 2017.

If the taxpayer doesn’t claim bonus depreciation, the greatest allowable depreciation deduction is:

  • $10,000 for the first year
  • $16,000 for the second year
  • $9,600 for the third year
  • $5,760 for each later taxable year in the recovery period

If a taxpayer claims 100 percent bonus depreciation, the greatest allowable depreciation deduction limit is:

  • $18,000 for the first year
  • $16,000 for the second year
  • $9,600 for the third year
  • $5,760 for each later taxable year in the recovery period

 

https://www.irs.gov/newsroom/changes-to-depreciation-limits-on-luxury-automobiles

 

View solution in original post