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2014 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 is also 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 2014 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 2014,

·

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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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 2014 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 2014 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES

Tax Year

Amount

1st Tax Year

$11,460

2nd Tax Year

$5,500

3rd Tax Year

$3,350

Each Succeeding Year

$1,975

 

 

 

 

TABLE 3. DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES PLACED IN SERVICE IN CALENDAR YEAR 2014 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 2014 FOR WHICH THE § 168 (k) DEPRECIATION DEDUCTION DOES NOT APPLY

Tax Year

Amount

1st Tax Year

$3,460

2nd Tax Year

$5,500

3rd Tax Year

$3,350

Each Succeeding Year

$1,975

 

 

TABLE 3. DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2014

Fair Market Value of Passenger Automobile

Tax Year During Lease

Over

Not Over

1st

2nd

3rd

4th

5th & later

$18,500

$19,000

3

5

8

10

11

$19,000

$19,500

3

6

10

11

13

19,500

20,000

3

8

11

13

14

20,000

20,500

4

8

13

14

17

20,500

21,000

4

9

14

17

18

21,000

21,500

5

10

15

18

21

21,500

22,000

5

11

17

20

22

22,000

23,000

6

13

18

23

25

23,000

24,000

7

14

22

26

29

24,000

25,000

8

16

25

29

33

25,000

26,000

8

19

27

32

38

26,000

27,000

9

20

31

35

42

27,000

28,000

10

22

33

40

45

28,000

29,000

11

24

36

43

49

29,000

30,000

12

26

39

46

53

30,000

31,000

13

28

41

50

57

31,000

32,000

14

30

44

53

61

32,000

33,000

14

32

47

56

65

33,000

34,000

15

34

50

59

69

34,000

35,000

16

36

52

64

72

35,000

36,000

17

38

55

67

76

36,000

37,000

18

39

59

70

80

37,000

38,000

19

41

61

74

84

38,000

39,000

20

43

64

77

88

39,000

40,000

21

45

67

80

92

40,000

41,000

21

47

70

84

96

41,000

42,000

22

49

73

87

100

42,000

43,000

23

51

75

91

104

43,000

44,000

24

53

78

94

108

44,000

45,000

25

55

81

97

112

45,000

46,000

26

56

84

101

116

46,000

47,000

27

58

87

104

120

47,000

48,000

28

60

90

107

124

48,000

49,000

28

62

93

111

127

49,000

50,000

29

64

96

114

131

50,000

51,000

30

66

98

118

135

51,000

52,000

31

68

101

121

139

52,000

53,000

32

70

104

124

143

53,000

54,000

33

72

106

128

147

54,000

55,000

34

74

109

131

151

55,000

56,000

34

76

112

135

155

56,000

57,000

35

78

115

138

159

57,000

58,000

36

80

118

141

163

58,000

59,000

37

81

121

145

167

59,000

60,000

38

83

124

148

171

60,000

62,000

39

86

128

153

177

62,000

64,000

41

90

134

159

185

64,000

66,000

43

94

139

167

192

66,000

68,000

44

98

145

173

201

68,000

70,000

46

102

150

180

209

70,000

72,000

48

105

156

188

216

72,000

74,000

50

109

162

194

224

74,000

76,000

51

113

168

200

232

76,000

78,000

53

117

173

208

239

78,000

80,000

55

120

179

215

247

80,000

85,000

58

127

189

226

261

85,000

90,000

62

137

203

243

281

90,000

95,000

67

146

217

260

301

95,000

100,000

71

156

231

277

320

100,000

110,000

77

170

253

303

349

110,000

120,000

86

189

281

337

389

120,000

130,000

95

208

310

370

428

130,000

140,000

103

228

337

405

467

140,000

150,000

112

247

366

438

507

150,000

160,000

121

266

394

473

545

160,000

170,000

130

284

423

507

585

170,000

180,000

138

304

451

541

624

180,000

190,000

147

323

479

575

663

190,000

200,000

156

342

507

609

703

200,000

210,000

164

361

536

643

742

210,000

220,000

173

380

565

676

781

220,000

230,000

182

399

593

710

821

230,000

240,000

190

418

622

744

860

240,000

And up

199

437

650

778

899

 

 

TABLE 4. DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2014

Fair Market Value of Truck or Van

Tax Year During Lease

Over

Not Over

1st

2nd

3rd

4th

5th & later

$19,000

$19,500

2

4

5

7

8

19,500

20,000

2

5

7

8

10

20,000

20,500

3

6

8

10

12

20,500

21,000

3

7

10

11

14

21,000

21,500

3

8

11

14

15

21,500

22,000

4

9

12

15

18

22,000

23,000

5

10

15

17

21

23,000

24,000

5

12

18

21

24

24,000

25,000

6

14

20

25

28

25,000

26,000

7

16

23

28

32

26,000

27,000

8

18

26

31

36

27,000

28,000

9

20

28

35

40

28,000

29,000

10

21

32

38

44

29,000

30,000

11

23

35

41

48

30,000

31,000

11

26

37

45

52

31,000

32,000

12

27

41

48

56

32,000

33,000

13

29

43

52

60

33,000

34,000

14

31

46

55

64

34,000

35,000

15

33

49

58

68

35,000

36,000

16

35

51

62

72

36,000

37,000

17

37

54

65

76

37,000

38,000

18

38

58

69

79

38,000

39,000

18

41

60

72

83

39,000

40,000

19

43

63

75

87

40,000

41,000

20

44

66

79

91

41,000

42,000

21

46

69

82

95

42,000

43,000

22

48

72

85

99

43,000

44,000

23

50

74

89

103

44,000

45,000

24

52

77

93

106

45,000

46,000

24

54

80

96

111

46,000

47,000

25

56

83

99

115

47,000

48,000

26

58

86

102

119

48,000

49,000

27

60

88

106

123

49,000

50,000

28

62

91

109

127

50,000

51,000

29

63

95

113

130

51,000

52,000

30

65

97

117

134

52,000

53,000

31

67

100

120

138

53,000

54,000

31

69

103

123

142

54,000

55,000

32

71

106

126

146

55,000

56,000

33

73

108

130

150

56,000

57,000

34

75

111

133

154

57,000

58,000

35

77

114

137

157

58,000

59,000

36

79

116

141

161

59,000

60,000

37

80

120

144

165

60,000

62,000

38

84

123

149

172

62,000

64,000

40

87

130

155

180

64,000

66,000

41

91

136

162

187

66,000

68,000

43

95

141

169

195

68,000

70,000

45

99

146

176

203

70,000

72,000

47

102

153

182

211

72,000

74,000

48

107

158

189

219

74,000

76,000

50

110

164

196

227

76,000

78,000

52

114

169

203

235

78,000

80,000

54

118

175

209

243

80,000

85,000

57

124

185

222

256

85,000

90,000

61

134

199

239

276

90,000

95,000

65

144

213

256

295

95,000

100,000

70

153

227

273

315

100,000

110,000

76

168

248

298

345

110,000

120,000

85

187

277

332

383

120,000

130,000

93

206

305

366

423

130,000

140,000

102

225

334

400

462

140,000

150,000

111

244

362

434

501

150,000

160,000

120

263

390

468

541

160,000

170,000

128

282

419

502

580

170,000

180,000

137

301

447

536

619

180,000

190,000

146

320

475

571

658

190,000

200,000

154

339

504

604

698

200,000

210,000

163

358

532

639

736

210,000

220,000

172

377

561

672

776

220,000

230,000

180

397

589

706

815

230,000

240,000

189

416

617

740

854

240,000

And up

198

435

645

774

894


 


 

1    Rev. Proc. 2014-21