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2019 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 2019,

·

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 2019 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES

Tax Year

Amount

1st Tax Year

$14,900

2nd Tax Year

$16,100

3rd Tax Year

$9,700

Each Succeeding Year

$5,760

 

 

TABLE 2. DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES ACQUIRED AFTER SEPTEMBER 27, 2017, AND PLACED IN SERVICE DURING CALENDAR YEAR 2019, FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES

Tax Year

Amount

1st Tax Year

$18,100

2nd Tax Year

$16,100

3rd Tax Year

$9,700

Each Succeeding Year

$5,760

 

 

TABLE 3. DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES PLACED IN SERVICE DURING CALENDAR YEAR 2019 FOR WHICH NO § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES

Tax Year

Amount

1st Tax Year

$10,100

2nd Tax Year

$16,100

3rd Tax Year

$9,700

Each Succeeding Year

$5,760

 

 

 

 

TABLE 4. DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2019

Fair Market Value of Passenger Automobile

Tax Year During Lease

Over

Not Over

1st

2nd

3rd

4th

5th & later

50,000

51,000

0

1

1

3

3

51,000

52,000

4

11

15

20

23

52,000

53,000

9

20

30

36

43

53,000

54,000

13

30

44

53

63

54,000

55,000

17

40

58

70

83

55,000

56,000

22

49

72

88

102

56,000

57,000

26

59

86

105

122

57,000

58,000

31

68

101

122

142

58,000

59,000

35

78

115

139

161

59,000

60,000

39

88

129

156

181

60,000

62,000

46

102

151

181

211

62,000

64,000

55

121

179

216

250

64,000

66,000

63

140

208

251

289

66,000

68,000

72

160

236

284

329

68,000

70,000

81

179

265

318

369

70,000

72,000

90

198

293

353

408

72,000

74,000

98

217

322

387

448

74,000

76,000

107

236

351

421

487

76,000

78,000

116

255

379

456

526

78,000

80,000

125

275

407

489

567

80,000

85,000

140

308

458

549

635

85,000

90,000

162

356

529

635

734

90,000

95,000

184

404

600

720

833

95,000

100,000

206

452

671

806

931

100,000

110,000

238

525

778

934

1,079

110,000

120,000

282

621

920

1,105

1,277

120,000

130,000

326

717

1,063

1,276

1,474

130,000

140,000

370

812

1,206

1,447

1,672

140,000

150,000

413

909

1,348

1,618

1,869

150,000

160,000

457

1,005

1,491

1,788

2,067

160,000

170,000

501

1,101

1,633

1,960

2,264

170,000

180,000

545

1,197

1,776

2,130

2,461

180,000

190,000

588

1,293

1,919

2,301

2,659

190,000

200,000

632

1,389

2,061

2,473

2,856

200,000

210,000

676

1,485

2,204

2,643

3,053

210,000

220,000

720

1,581

2,346

2,815

3,250

220,000

230,000

763

1,677

2,489

2,986

3,448

230,000

240,000

807

1,773

2,632

3,156

3,645

240,000

and over

851

1,869

2,774

3,328

3,842

 


 

1    Rev. Proc. 2018-25