Article Date:
April 2011


Word Count:
426

 

 

IRS Releases 2011 Luxury Auto Limits


The IRS has released the new 2011 luxury auto limits on depreciation.1 Here is how the luxury limits work:

 

On a new passenger auto placed in service in 2011, the law limits your depreciation deduction to no more than

 

·

$11,060 in 2011;

·

$4,900 in 2012;

·

$2,950 in 2013; and

·

$1,775 each year thereafter.

 

Example. You place a $40,000 car in service on May 17, 2011. With 100 percent business use, these are your deductions:

 

·

$11,060 in 2011

·

$4,900 in 2012

·

$2,950 in 2013

·

$1,775 in years 2014 ... Log in to view full article.

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