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2016 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 2016 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 2016,

·

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).

 

 

TABLE 1. DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES PLACED IN SERVICE IN CALENDAR YEAR 2016 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 2016 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES

Tax Year

Amount

1st Tax Year

$11,560

2nd Tax Year

$5,700

3rd Tax Year

$3,350

Each Succeeding Year

$2,075

 

 

TABLE 3. DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES PLACED IN SERVICE IN CALENDAR YEAR 2016 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 2016 FOR WHICH THE § 168 (k) DEPRECIATION DEDUCTION DOES NOT APPLY

Tax Year

Amount

1st Tax Year

$3,560

2nd Tax Year

$5,700

3rd Tax Year

$3,350

Each Succeeding Year

$2,075

 

 

TABLE 5. DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2016

Fair Market Value of Passenger Automobile

Tax Year During Lease

Over

Not Over

1st

2nd

3rd

4th

5th & later

19,000

19,500

6

13

20

23

27

19,500

20,000

7

15

23

27

30

20,000

20,500

8

17

26

30

35

20,500

21,000

9

19

29

33

39

21,000

21,500

10

21

31

38

42

21,500

22,000

11

23

34

41

47

22,000

23,000

12

26

39

46

53

23,000

24,000

14

30

44

54

60

24,000

25,000

16

34

50

60

69

25,000

26,000

17

38

56

67

78

26,000

27,000

19

42

62

74

85

27,000

28,000

21

46

68

81

93

28,000

29,000

23

50

73

89

101

29,000

30,000

25

53

80

95

110

30,000

31,000

26

58

85

102

118

31,000

32,000

28

62

91

109

126

32,000

33,000

30

65

98

116

134

33,000

34,000

32

69

103

123

142

34,000

35,000

34

73

109

130

150

35,000

36,000

35

77

115

137

158

36,000

37,000

37

81

121

144

166

37,000

38,000

39

85

127

151

174

38,000

39,000

41

89

132

158

183

39,000

40,000

42

93

138

166

190

40,000

41,000

44

97

144

172

199

41,000

42,000

46

101

150

179

207

42,000

43,000

48

105

155

187

215

43,000

44,000

50

109

161

193

223

44,000

45,000

51

113

167

201

231

45,000

46,000

53

117

173

207

239

46,000

47,000

55

121

179

214

247

47,000

48,000

57

124

185

222

255

48,000

49,000

59

128

191

228

264

49,000

50,000

60

133

196

236

271

50,000

51,000

62

136

203

242

280

51,000

52,000

64

140

209

249

288

52,000

53,000

66

144

214

257

295

53,000

54,000

68

148

220

263

304

54,000

55,000

69

152

226

271

312

55,000

56,000

71

156

232

277

320

56,000

57,000

73

160

238

284

328

57,000

58,000

75

164

243

292

336

58,000

59,000

77

168

249

298

345

59,000

60,000

78

172

255

306

352

60,000

62,000

81

178

264

316

364

62,000

64,000

85

185

276

330

381

64,000

66,000

88

194

287

344

397

66,000

68,000

92

201

299

358

413

68,000

70,000

95

209

311

372

430

70,000

72,000

99

217

322

387

445

72,000

74,000

102

225

334

400

462

74,000

76,000

106

233

346

414

478

76,000

78,000

110

241

357

428

494

78,000

80,000

113

249

369

442

510

80,000

85,000

120

262

390

467

538

85,000

90,000

128

282

419

502

579

90,000

95,000

137

302

448

537

620

95,000

100,000

146

322

477

572

660

100,000

110,000

160

351

521

625

721

110,000

120,000

178

390

580

695

801

120,000

130,000

196

430

638

765

882

130,000

140,000

214

469

697

835

963

140,000

150,000

232

508

755

906

1,044

150,000

160,000

249

548

814

975

1,126

160,000

170,000

267

588

872

1,045

1,207

170,000

180,000

285

627

930

1,116

1,288

180,000

190,000

303

666

989

1,186

1,368

190,000

200,000

321

706

1,047

1,256

1,449

200,000

210,000

339

745

1,106

1,326

1,530

210,000

220,000

357

784

1,165

1,396

1,611

220,000

230,000

375

824

1,223

1,466

1,692

230,000

240,000

393

863

1,281

1,537

1,773

240,000

And up

411

902

1,340

1,607

1,854

 

 

TABLE 6. DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2016

Fair Market Value of Truck or Van

Tax Year During Lease

Over

Not Over

1st

2nd

3rd

4th

5th & later

19,500

20,000

3

8

12

14

16

20,000

20,500

4

10

15

17

20

20,500

21,000

5

12

17

21

25

21,000

21,500

6

14

20

25

28

21,500

22,000

7

16

23

28

32

22,000

23,000

8

19

28

33

38

23,000

24,000

10

23

33

41

46

24,000

25,000

12

26

40

47

55

25,000

26,000

14

30

46

54

63

26,000

27,000

16

34

51

62

70

27,000

28,000

17

38

58

68

79

28,000

29,000

19

42

63

76

86

29,000

30,000

21

46

69

82

95

30,000

31,000

23

50

75

89

103

31,000

32,000

25

54

80

97

111

32,000

33,000

26

58

86

104

119

33,000

34,000

28

62

92

111

127

34,000

35,000

30

66

98

117

136

35,000

36,000

32

70

104

124

143

36,000

37,000

34

73

110

132

151

37,000

38,000

35

78

115

139

160

38,000

39,000

37

82

121

146

167

39,000

40,000

39

85

128

152

176

40,000

41,000

41

89

133

160

184

41,000

42,000

42

94

139

166

192

42,000

43,000

44

97

145

174

200

43,000

44,000

46

101

151

181

208

44,000

45,000

48

105

157

187

217

45,000

46,000

50

109

162

195

224

46,000

47,000

51

113

169

201

233

47,000

48,000

53

117

174

209

240

48,000

49,000

55

121

180

216

248

49,000

50,000

57

125

186

222

257

50,000

51,000

59

129

191

230

265

51,000

52,000

60

133

197

237

273

52,000

53,000

62

137

203

244

281

53,000

54,000

64

141

209

250

290

54,000

55,000

66

144

216

257

298

55,000

56,000

68

148

221

265

305

56,000

57,000

69

153

226

272

314

57,000

58,000

71

156

233

279

321

58,000

59,000

73

160

239

285

330

59,000

60,000

75

164

244

293

338

60,000

62,000

77

170

253

304

350

62,000

64,000

81

178

265

317

366

64,000

66,000

85

186

276

331

383

66,000

68,000

88

194

288

345

399

68,000

70,000

92

202

299

360

414

70,000

72,000

95

210

311

374

431

72,000

74,000

99

217

324

387

447

74,000

76,000

102

226

335

401

463

76,000

78,000

106

233

347

415

480

78,000

80,000

110

241

358

430

495

80,000

85,000

116

255

379

454

524

85,000

90,000

125

274

409

489

564

90,000

95,000

134

294

437

525

605

95,000

100,000

143

314

466

560

645

100,000

110,000

156

344

510

612

706

110,000

120,000

174

383

569

682

787

120,000

130,000

192

422

628

752

868

130,000

140,000

210

462

685

823

949

140,000

150,000

228

501

744

893

1,030

150,000

160,000

246

540

803

963

1,111

160,000

170,000

264

580

861

1,033

1,192

170,000

180,000

282

619

920

1,102

1,274

180,000

190,000

300

658

979

1,172

1,354

190,000

200,000

318

698

1,036

1,243

1,435

200,000

210,000

335

738

1,095

1,313

1,516

210,000

220,000

353

777

1,154

1,383

1,597

220,000

230,000

371

816

1,212

1,454

1,678

230,000

240,000

389

856

1,270

1,524

1,759

240,000

And up

407

895

1,329

1,594

1,839

 

 

 

 

 

 

 

 

 

 

 


 

1    Rev. Proc. 2016-23