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2011 Luxury Auto Depreciation Limits, Tables and Explanations

The tax law limits the amount you can deduct for depreciation of your car, truck or van. The section 179 deduction and special depreciation allowance are treated as depreciation for purposes of these limits. The maximum amount you can deduct each year depends on the year you place the car in service. The 2011 luxury vehicle tables appear below.1 The tables show

 

·

limitations on depreciation deductions for owners of passenger vehicles, trucks and vans first placed in service during calendar year 2011,

·

income inclusion amounts by lessees of passenger vehicles, trucks and vans, and

·

revised depreciation limitations and lessee inclusion amounts for passenger vehicles taking advantage of bonus depreciation under IRC Section 168(k).

 

To stay on top of these and future tax law changes, we suggest that you read the monthly articles published online at the Bradford Tax Institute. We provide cutting-edge tax information for the self-employed, the one owner business, and the husband and wife owned business.

 

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TABLE 1. DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES PLACED IN SERVICE IN CALENDAR YEAR 2011 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES

Tax Year

Amount

1st Tax Year

$11,060

2nd Tax Year

$4,900

3rd Tax Year

$2,950

Each Succeeding Year

$1,775

 

 

TABLE 2. DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2011 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES

Tax Year

Amount

1st Tax Year

$11,260

2nd Tax Year

$5,200

3rd Tax Year

$3,150

Each Succeeding Year

$1,875

 

 

TABLE 3. DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES PLACED IN SERVICE IN CALENDAR YEAR 2011 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY

Tax Year

Amount

1st Tax Year

$3,060

2nd Tax Year

$4,900

3rd Tax Year

$2,950

Each Succeeding Year

$1,775

 

 

TABLE 4. DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2011 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY

Tax Year

Amount

1st Tax Year

$3,260

2nd Tax Year

$5,200

3rd Tax Year

$3,150

Each Succeeding Year

$1,875

 

 

TABLE 5. DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2011

Fair Market Value of Passenger Automobile

Tax Year During Lease

Over

Not Over

1st

2nd

3rd

4th

5th & later

$18,500

$19,000

3

8

11

13

16

19,000

19,500

4

9

13

15

18

19,500

20,000

4

10

15

17

20

20,000

20,500

5

11

16

19

23

20,500

21,000

5

12

18

21

25

21,000

21,500

6

13

19

24

26

21,500

22,000

6

14

21

26

29

22,000

23,000

7

16

23

29

32

23,000

24,000

8

18

27

32

37

24,000

25,000

9

20

30

36

42

25,000

26,000

10

23

33

40

46

26,000

27,000

11

25

36

44

51

27,000

28,000

12

27

40

48

55

28,000

29,000

13

29

43

52

60

29,000

30,000

14

31

47

55

65

30,000

31,000

15

34

49

60

69

31,000

32,000

16

36

53

63

73

32,000

33,000

17

38

56

68

77

33,000

34,000

18

40

60

71

82

34,000

35,000

19

42

63

75

87

35,000

36,000

20

45

66

79

91

36,000

37,000

21

47

69

83

96

37,000

38,000

22

49

73

87

100

38,000

39,000

23

51

76

91

105

39,000

40,000

24

53

80

94

110

40,000

41,000

25

56

82

99

114

41,000

42,000

26

58

86

102

119

42,000

43,000

27

60

89

107

123

43,000

44,000

28

62

93

110

128

44,000

45,000

29

64

96

114

133

45,000

46,000

30

67

98

119

137

46,000

47,000

31

69

102

122

141

47,000

48,000

32

71

105

127

145

48,000

49,000

33

73

109

130

150

49,000

50,000

34

76

111

134

155

50,000

51,000

35

78

115

138

159

51,000

52,000

36

80

118

142

164

52,000

53,000

37

82

122

146

168

53,000

54,000

38

84

125

150

173

54,000

55,000

39

87

128

153

178

55,000

56,000

40

89

131

158

182

56,000

57,000

41

91

135

161

187

57,000

58,000

42

93

138

166

191

58,000

59,000

43

95

142

169

196

59,000

60,000

44

98

144

174

200

60,000

62,000

46

101

149

179

207

62,000

64,000

48

105

156

187

216

64,000

66,000

50

109

163

195

225

66,000

68,000

52

114

169

203

234

68,000

70,000

54

118

176

211

243

70,000

72,000

56

123

182

218

253

72,000

74,000

58

127

189

226

262

74,000

76,000

60

132

195

234

270

76,000

78,000

62

136

202

242

279

78,000

80,000

64

140

209

250

288

80,000

85,000

67

148

220

264

304

85,000

90,000

72

159

237

283

327

90,000

95,000

77

170

253

303

350

95,000

100,000

82

181

269

323

372

100,000

110,000

90

198

293

352

406

110,000

120,000

100

220

326

391

452

120,000

130,000

110

242

359

430

497

130,000

140,000

120

264

392

469

543

140,000

150,000

130

286

424

509

588

150,000

160,000

140

308

457

548

633

160,000

170,000

150

330

490

587

679

170,000

180,000

160

352

523

626

724

180,000

190,000

170

374

555

666

769

190,000

200,000

180

396

588

705

815

200,000

210,000

190

418

621

744

860

210,000

220,000

200

440

654

784

904

220,000

230,000

210

462

687

823

950

230,000

240,000

220

484

719

863

995

240,000

And up

230

506

752

902

1,040

 

 

TABLE 6. DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2011

Fair Market Value of Truck or Van

Tax Year During Lease

Over

Not Over

1st

2nd

3rd

4th

5th & later

$19,000

$19,500

3

7

9

12

13

19,500

20,000

3

8

11

14

15

20,000

20,500

4

9

13

15

18

20,500

21,000

4

10

15

17

20

21,000

21,500

5

11

16

20

22

21,500

22,000

5

12

18

22

24

22,000

23,000

6

14

20

24

29

23,000

24,000

7

16

24

28

32

24,000

25,000

8

18

27

32

37

25,000

26,000

9

20

31

36

41

26,000

27,000

10

23

33

40

46

27,000

28,000

11

25

37

43

51

28,000

29,000

12

27

40

48

55

29,000

30,000

13

29

43

52

60

30,000

31,000

14

31

47

56

64

31,000

32,000

15

34

49

60

69

32,000

33,000

16

36

53

63

74

33,000

34,000

17

38

56

68

78

34,000

35,000

18

40

60

71

83

35,000

36,000

19

43

62

76

87

36,000

37,000

20

45

66

79

92

37,000

38,000

21

47

69

83

97

38,000

39,000

22

49

73

87

101

39,000

40,000

23

51

76

91

105

40,000

41,000

24

54

79

95

109

41,000

42,000

25

56

82

99

114

42,000

43,000

26

58

86

103

118

43,000

44,000

27

60

89

107

123

44,000

45,000

28

62

93

110

128

45,000

46,000

29

65

95

115

132

46,000

47,000

30

67

99

118

137

47,000

48,000

31

69

102

123

141

48,000

49,000

32

71

106

126

146

49,000

50,000

33

73

109

130

151

50,000

51,000

34

76

112

134

155

51,000

52,000

35

78

115

138

160

52,000

53,000

36

80

118

143

164

53,000

54,000

37

82

122

146

169

54,000

55,000

38

84

125

150

173

55,000

56,000

39

87

128

154

177

56,000

57,000

40

89

131

158

182

57,000

58,000

41

91

135

162

186

58,000

59,000

42

93

138

166

191

59,000

60,000

43

95

142

169

196

60,000

62,000

45

99

146

175

203

62,000

64,000

47

103

153

183

212

64,000

66,000

49

107

160

191

221

66,000

68,000

51

112

166

199

229

68,000

70,000

53

116

173

206

239

70,000

72,000

55

121

179

214

248

72,000

74,000

57

125

186

222

257

74,000

76,000

59

129

192

231

266

76,000

78,000

61

134

198

239

275

78,000

80,000

63

138

205

246

285

80,000

85,000

66

146

217

260

300

85,000

90,000

71

157

233

280

322

90,000

95,000

76

168

250

299

345

95,000

100,000

81

179

266

319

368

100,000

110,000

89

196

290

348

402

110,000

120,000

99

218

323

387

447

120,000

130,000

109

240

355

427

493

130,000

140,000

119

262

388

466

538

140,000

150,000

129

284

421

505

583

150,000

160,000

139

306

454

544

629

160,000

170,000

149

328

487

583

674

170,000

180,000

159

350

519

623

719

180,000

190,000

169

372

552

662

765

190,000

200,000

179

394

585

701

810

200,000

210,000

189

416

618

740

856

210,000

220,000

199

438

651

779

901

220,000

230,000

209

460

683

819

946

230,000

240,000

219

482

716

858

992

240,000

And up

229

504

749

897

1,037

 

 

TABLE 7. DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES PLACED IN SERVICE IN CALENDAR YEAR 2010 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES

Tax Year

Amount

1st Tax Year

$11,060

2nd Tax Year

$4,900

3rd Tax Year

$2,950

Each Succeeding Year

$1,775

 

 

TABLE 8. DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2010 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES

Tax Year

Amount

1st Tax Year

$11,160

2nd Tax Year

$5,100

3rd Tax Year

$3,050

Each Succeeding Year

$1,875

 


 

1    Rev. Proc. 2011-21.