Search Help


Enter one of more keywords to search. Use quotes for “exact phrase.” Note that '*' and '?' wildcards are supported.

When your search results appear, you can refine your search further: Sort for only results in which all search terms appear AND/OR sort by chronological order.


Share

2012 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 2012 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 2012,

·

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.

 

If you're already a subscriber to the Tax Reduction Letter, you will be prompted to log in when you CLICK HERE.

 

If you are not yet a subscriber, CLICK HERE. You'll get a no-obligation 7-day FREE trial during which you can read all of our helpful tax saving tips from the last two months. This trial is absolutely free and there are no strings attached.

 

 

TABLE 1. DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES PLACED IN SERVICE IN CALENDAR YEAR 2012 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

 

 

TABLE 2. DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES

Tax Year

Amount

1st Tax Year

$11,360

2nd Tax Year

$5,300

3rd Tax Year

$3,150

Each Succeeding Year

$1,875

 

 

TABLE 3. DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY

Tax Year

Amount

1st Tax Year

$3,160

2nd Tax Year

$5,100

3rd Tax Year

$3,050

Each Succeeding Year

$1,875

 

 

TABLE 4. DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY

Tax Year

Amount

1st Tax Year

$3,360

2nd Tax Year

$5,300

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 2012

Fair Market Value of Passenger Automobile

Tax Year During Lease

Over

Not Over

1st

2nd

3rd

4th

5th & later

$18,500

$19,000

2

4

5

6

8

19,000

19,500

2

4

7

7

9

19,500

20,000

2

5

8

8

10

20,000

20,500

3

5

9

10

11

20,500

21,000

3

6

9

12

12

21,000

21,500

3

7

10

12

14

21,500

22,000

3

8

11

13

16

22,000

23,000

4

8

13

15

17

23,000

24,000

4

10

15

17

20

24,000

25,000

5

11

17

19

23

25,000

26,000

6

12

19

21

26

26,000

27,000

6

14

20

24

28

27,000

28,000

7

15

22

26

31

28,000

29,000

7

16

25

28

33

29,000

30,000

8

18

25

32

35

30,000

31,000

9

19

27

34

38

31,000

32,000

9

20

30

36

41

32,000

33,000

10

21

32

38

43

33,000

34,000

10

23

33

41

46

34,000

35,000

11

24

35

43

49

35,000

36,000

12

25

37

45

52

36,000

37,000

12

27

39

47

54

37,000

38,000

13

28

41

49

57

38,000

39,000

13

29

43

52

59

39,000

40,000

14

30

45

54

62

40,000

41,000

14

32

47

56

65

41,000

42,000

15

33

49

58

68

42,000

43,000

16

34

51

61

70

43,000

44,000

16

36

52

63

73

44,000

45,000

17

37

54

66

75

45,000

46,000

17

38

57

67

78

46,000

47,000

18

39

59

70

80

47,000

48,000

19

40

61

72

83

48,000

49,000

19

42

62

75

86

49,000

50,000

20

43

64

77

89

50,000

51,000

20

45

66

79

91

51,000

52,000

21

46

68

81

94

52,000

53,000

21

47

70

84

96

53,000

54,000

22

48

72

86

99

54,000

55,000

23

49

74

88

102

55,000

56,000

23

51

76

90

104

56,000

57,000

24

52

78

92

107

57,000

58,000

24

54

79

95

110

58,000

59,000

25

55

81

97

113

59,000

60,000

26

56

83

100

115

60,000

62,000

26

58

86

103

119

62,000

64,000

28

60

90

108

124

64,000

66,000

29

63

94

112

129

66,000

68,000

30

66

97

117

135

68,000

70,000

31

68

102

121

140

70,000

72,000

32

71

105

126

145

72,000

74,000

33

74

109

130

151

74,000

76,000

35

76

113

135

156

76,000

78,000

36

78

117

140

161

78,000

80,000

37

81

120

145

166

80,000

85,000

39

86

127

152

176

85,000

90,000

42

92

137

163

189

90,000

95,000

45

98

147

175

202

95,000

100,000

48

105

155

187

215

100,000

110,000

52

115

170

203

235

110,000

120,000

58

127

189

227

262

120,000

130,000

64

140

208

250

288

130,000

140,000

70

153

227

272

315

140,000

150,000

75

166

246

296

340

150,000

160,000

81

179

265

318

368

160,000

170,000

87

192

284

341

394

170,000

180,000

93

204

304

364

420

180,000

190,000

99

217

323

387

446

190,000

200,000

105

230

342

409

473

200,000

210,000

111

243

361

432

499

210,000

220,000

116

256

380

455

526

220,000

230,000

122

269

399

478

552

230,000

240,000

128

282

418

501

578

240,000

And up

134

294

437

524

605

 

 

TABLE 6. DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012

Fair Market Value of Truck or Van

Tax Year During Lease

Over

Not Over

1st

2nd

3rd

4th

5th & later

$19,000

$19,500

1

4

5

6

7

19,500

20,000

2

4

6

7

9

20,000

20,500

2

5

7

8

10

20,500

21,000

2

5

8

10

11

21,000

21,500

3

6

9

10

13

21,500

22,000

3

6

10

12

14

22,000

23,000

3

8

11

14

15

23,000

24,000

4

9

13

16

18

24,000

25,000

4

10

15

19

21

25,000

26,000

5

11

17

21

24

26,000

27,000

6

12

19

23

26

27,000

28,000

6

14

21

25

29

28,000

29,000

7

15

23

27

32

29,000

30,000

7

17

24

30

34

30,000

31,000

8

18

26

32

37

31,000

32,000

9

19

28

34

40

32,000

33,000

9

20

31

36

42

33,000

34,000

10

21

33

39

44

34,000

35,000

10

23

34

41

48

35,000

36,000

11

24

36

44

50

36,000

37,000

12

25

38

46

53

37,000

38,000

12

27

40

48

55

38,000

39,000

13

28

42

50

58

39,000

40,000

13

29

44

53

60

40,000

41,000

14

31

45

55

63

41,000

42,000

14

32

48

57

66

42,000

43,000

15

33

50

59

69

43,000

44,000

16

34

52

61

72

44,000

45,000

16

36

53

64

74

45,000

46,000

17

37

55

66

77

46,000

47,000

17

38

58

68

79

47,000

48,000

18

40

59

70

82

48,000

49,000

19

41

61

73

84

49,000

50,000

19

42

63

75

87

50,000

51,000

20

43

65

78

89

51,000

52,000

20

45

66

80

93

52,000

53,000

21

46

68

83

95

53,000

54,000

21

48

70

84

98

54,000

55,000

22

49

72

87

100

55,000

56,000

23

50

74

89

103

56,000

57,000

23

51

76

92

105

57,000

58,000

24

52

78

94

108

58,000

59,000

24

54

80

96

111

59,000

60,000

25

55

82

98

114

60,000

62,000

26

57

85

101

118

62,000

64,000

27

60

88

106

123

64,000

66,000

28

62

93

110

128

66,000

68,000

29

65

96

115

134

68,000

70,000

30

67

100

120

139

70,000

72,000

32

70

103

125

144

72,000

74,000

33

72

108

129

149

74,000

76,000

34

75

111

134

155

76,000

78,000

35

78

115

138

160

78,000

80,000

36

80

119

143

165

80,000

85,000

38

85

125

151

175

85,000

90,000

41

91

135

163

187

90,000

95,000

44

98

144

174

201

95,000

100,000

47

104

154

185

214

100,000

110,000

52

113

169

202

234

110,000

120,000

57

127

187

225

261

120,000

130,000

63

139

207

248

287

130,000

140,000

69

152

226

271

313

140,000

150,000

75

165

245

294

339

150,000

160,000

81

178

264

316

366

160,000

170,000

87

190

283

340

392

170,000

180,000

92

204

302

362

419

180,000

190,000

98

216

322

385

445

190,000

200,000

104

229

340

409

471

200,000

210,000

110

242

359

431

498

210,000

220,000

116

255

378

454

524

220,000

230,000

122

267

398

477

551

230,000

240,000

127

281

416

500

577

240,000

And up

133

294

435

523

603

 

 


 

1    Rev. Proc. 2012-23