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2018 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 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 2018 luxury vehicle tables appear below.1 The tables show

 

·

limitations on depreciation deductions for owners of passenger vehicles (including trucks and vans) first placed in service during calendar year 2018,

·

income inclusion amounts by lessees of passenger vehicles, 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 ACQUIRED BEFORE SEPTEMBER 28, 2017, AND PLACED IN SERVICE DURING CALENDAR YEAR 2018 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES

Tax Year

Amount

1st Tax Year

$16,400

2nd Tax Year

$16,900

3rd Tax Year

$9,600

Each Succeeding Year

$5,760

 

 

TABLE 2. DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES ACQUIRED AFTER SEPTEMBER 27, 2017, AND PLACED IN SERVICE DURING CALENDAR YEAR 2018, FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES

Tax Year

Amount

1st Tax Year

$18,000

2nd Tax Year

$16,000

3rd Tax Year

$9,600

Each Succeeding Year

$5,700

 

 

TABLE 3. DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES PLACED IN SERVICE DURING CALENDAR YEAR 2018 FOR WHICH NO § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES

Tax Year

Amount

1st Tax Year

$10,000

2nd Tax Year

$16,000

3rd Tax Year

$9,600

Each Succeeding Year

$5,700

 

 

TABLE 4. DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2018

Fair Market Value of Passenger Automobile

Tax Year During Lease

Over

Not Over

1st

2nd

3rd

4th

5th & later

50,000

51,000

1

3

5

5

6

51,000

52,000

4

9

13

16

19

52,000

53,000

7

15

22

27

31

53,000

54,000

10

21

31

37

44

54,000

55,000

12

27

40

48

56

55,000

56,000

15

33

49

59

68

56,000

57,000

18

39

58

69

81

57,000

58,000

20

45

67

80

93

58,000

59,000

23

51

76

91

105

59,000

60,000

26

57

85

101

117

60,000

62,000

30

66

98

118

135

62,000

64,000

36

78

116

139

160

64,000

66,000

41

90

134

160

185

66,000

68,000

46

102

152

181

210

68,000

70,000

52

114

169

203

235

70,000

72,000

57

126

187

225

259

72,000

74,000

63

138

205

246

284

74,000

76,000

68

150

223

267

309

76,000

78,000

74

162

241

288

333

78,000

80,000

79

174

259

310

357

80,000

85,000

89

195

290

347

401

85,000

90,000

102

225

335

400

463

90,000

95,000

116

255

379

454

525

95,000

100,000

130

285

423

508

586

100,000

110,000

150

330

491

587

679

110,000

120,000

178

390

579

695

802

120,000

130,000

205

450

669

801

926

130,000

140,000

232

510

758

908

1,049

140,000

150,000

260

570

847

1,015

1,172

150,000

160,000

287

630

936

1,122

1,296

160,000

170,000

314

691

1,024

1,230

1,419

170,000

180,000

342

750

1,114

1,336

1,543

180,000

190,000

369

810

1,204

1,442

1,666

190,000

200,000

396

871

1,292

1,550

1,789

200,000

210,000

424

930

1,382

1,656

1,913

210,000

220,000

451

991

1,470

1,764

2,036

220,000

230,000

478

1,051

1,559

1,871

2,159

230,000

240,000

505

1,111

1,649

1,977

2,283

240,000

And up

533

1,171

1,738

2,084

2,406

 

 


 

1    Rev. Proc. 2018-25