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2013 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 2013 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 2013,

·

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 2013 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 2013 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES

Tax Year

Amount

1st Tax Year

$11,360

2nd Tax Year

$5,400

3rd Tax Year

$3,250

Each Succeeding Year

$1,975

 

 

TABLE 3. DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES PLACED IN SERVICE IN CALENDAR YEAR 2013 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 2013 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY

Tax Year

Amount

1st Tax Year

$3,360

2nd Tax Year

$5,400

3rd Tax Year

$3,250

Each Succeeding Year

$1,975

 

 

TABLE 5. DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2013

Fair Market Value of Passenger Automobile

Tax Year During Lease

Over

Not Over

1st

2nd

3rd

4th

5th & later

$19,000

$19,500

2

4

6

7

8

19,500

20,000

2

5

6

9

9

20,000

20,500

2

5

8

9

11

20,500

21,000

3

6

8

10

12

21,000

21,500

3

6

10

11

13

21,500

22,000

3

7

10

13

14

22,000

23,000

4

8

11

14

16

23,000

24,000

4

9

14

16

18

24,000

25,000

5

10

15

18

21

25,000

26,000

5

12

16

21

23

26,000

27,000

6

12

19

23

25

27,000

28,000

6

14

20

25

28

28,000

29,000

7

15

22

27

30

29,000

30,000

7

16

24

29

33

30,000

31,000

8

17

26

31

35

31,000

32,000

8

19

27

33

38

32,000

33,000

9

20

29

35

40

33,000

34,000

10

21

31

37

43

34,000

35,000

10

22

33

39

45

35,000

36,000

11

23

35

41

48

36,000

37,000

11

25

36

43

50

37,000

38,000

12

26

38

45

53

38,000

39,000

12

27

40

47

55

39,000

40,000

13

28

42

49

58

40,000

41,000

13

29

44

52

59

41,000

42,000

14

30

45

54

63

42,000

43,000

14

32

47

56

64

43,000

44,000

15

33

48

59

67

44,000

45,000

15

34

51

60

69

45,000

46,000

16

35

52

63

72

46,000

47,000

17

36

54

65

74

47,000

48,000

17

38

55

67

77

48,000

49,000

18

39

57

69

79

49,000

50,000

18

40

59

71

82

50,000

51,000

19

41

61

73

84

51,000

52,000

19

42

63

75

87

52,000

53,000

20

43

65

77

89

53,000

54,000

20

45

66

79

92

54,000

55,000

21

46

68

81

94

55,000

56,000

21

47

70

84

96

56,000

57,000

22

48

72

85

99

57,000

58,000

22

50

73

88

101

58,000

59,000

23

51

75

90

103

59,000

60,000

24

52

76

92

106

60,000

62,000

24

54

79

95

110

62,000

64,000

25

56

83

99

115

64,000

66,000

27

58

87

103

120

66,000

68,000

28

60

90

108

125

68,000

70,000

29

63

93

112

130

70,000

72,000

30

65

97

117

134

72,000

74,000

31

68

100

121

139

74,000

76,000

32

70

104

125

144

76,000

78,000

33

73

107

129

149

78,000

80,000

34

75

111

133

154

80,000

85,000

36

79

117

141

162

85,000

90,000

39

85

126

151

174

90,000

95,000

41

91

135

162

186

95,000

100,000

44

97

144

172

199

100,000

110,000

48

106

157

188

217

110,000

120,000

53

118

174

210

241

120,000

130,000

59

129

193

230

266

130,000

140,000

64

141

210

252

290

140,000

150,000

70

153

227

273

315

150,000

160,000

75

165

245

294

339

160,000

170,000

80

177

263

315

363

170,000

180,000

86

189

280

336

388

180,000

190,000

91

201

298

357

412

190,000

200,000

97

212

316

378

436

200,000

210,000

102

224

333

400

461

210,000

220,000

107

236

351

420

486

220,000

230,000

113

248

368

442

509

230,000

240,000

118

260

386

463

534

240,000

And up

124

272

403

484

558

 

 

TABLE 6. DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2013

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

3

4

5

6

19,500

20,000

2

3

5

6

7

20,000

20,500

2

4

6

7

8

20,500

21,000

2

5

7

8

9

21,000

21,500

2

5

8

9

11

21,500

22,000

3

6

8

10

12

22,000

23,000

3

7

10

11

14

23,000

24,000

4

8

11

14

16

24,000

25,000

4

9

14

16

18

25,000

26,000

5

10

15

18

21

26,000

27,000

5

12

17

20

23

27,000

28,000

6

13

18

23

25

28,000

29,000

6

14

20

25

28

29,000

30,000

7

15

22

27

30

30,000

31,000

7

16

24

29

33

31,000

32,000

8

17

26

31

35

32,000

33,000

8

19

27

33

38

33,000

34,000

9

20

29

35

41

34,000

35,000

10

21

31

37

43

35,000

36,000

10

22

33

39

46

36,000

37,000

11

23

35

41

48

37,000

38,000

11

25

36

43

51

38,000

39,000

12

26

38

45

53

39,000

40,000

12

27

40

48

55

40,000

41,000

13

28

42

49

58

41,000

42,000

13

29

44

52

60

42,000

43,000

14

30

46

54

62

43,000

44,000

14

32

47

56

65

44,000

45,000

15

33

48

59

67

45,000

46,000

15

34

51

60

70

46,000

47,000

16

35

52

63

72

47,000

48,000

17

36

54

65

74

48,000

49,000

17

38

55

67

77

49,000

50,000

18

39

57

69

79

50,000

51,000

18

40

59

71

82

51,000

52,000

19

41

61

73

84

52,000

53,000

19

42

63

75

87

53,000

54,000

20

43

65

77

89

54,000

55,000

20

45

66

80

91

55,000

56,000

21

46

68

81

94

56,000

57,000

21

47

70

84

96

57,000

58,000

22

48

72

86

98

58,000

59,000

22

50

73

88

101

59,000

60,000

23

51

75

90

103

60,000

62,000

24

52

78

93

108

62,000

64,000

25

55

81

97

113

64,000

66,000

26

57

85

101

118

66,000

68,000

27

60

88

106

122

68,000

70,000

28

62

92

110

127

70,000

72,000

29

64

96

114

132

72,000

74,000

30

67

99

118

137

74,000

76,000

31

69

103

122

142

76,000

78,000

32

72

105

127

147

78,000

80,000

34

73

110

131

151

80,000

85,000

35

78

116

138

160

85,000

90,000

38

84

124

149

172

90,000

95,000

41

90

133

160

184

95,000

100,000

44

95

142

171

196

100,000

110,000

48

104

156

186

214

110,000

120,000

53

116

173

207

240

120,000

130,000

58

128

191

228

264

130,000

140,000

64

140

208

249

288

140,000

150,000

69

152

226

270

313

150,000

160,000

75

164

243

292

336

160,000

170,000

80

176

261

312

361

170,000

180,000

85

188

278

334

386

180,000

190,000

91

199

296

355

410

190,000

200,000

96

211

314

376

434

200,000

210,000

101

223

332

397

459

210,000

220,000

107

235

349

418

483

220,000

230,000

112

247

367

439

507

230,000

240,000

118

259

384

460

532

240,000

And up

123

271

401

482

556


 


 

1    Rev. Proc. 2013-21