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2020 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 2020 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 2020,

·

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 2020 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 2. DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES ACQUIRED AFTER SEPTEMBER 27, 2017, AND PLACED IN SERVICE DURING CALENDAR YEAR 2020 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 3. DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2020

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

0

2

2

51,000

52,000

2

6

9

10

13

52,000

53,000

5

11

17

20

24

53,000

54,000

7

17

24

30

35

54,000

55,000

10

22

32

39

46

55,000

56,000

12

27

41

48

57

56,000

57,000

15

32

49

58

68

57,000

58,000

17

38

56

68

79

58,000

59,000

19

44

64

77

90

59,000

60,000

22

49

72

87

100

60,000

62,000

26

56

84

102

117

62,000

64,000

30

68

99

121

139

64,000

66,000

35

78

116

139

161

66,000

68,000

40

89

131

159

183

68,000

70,000

45

99

148

177

205

70,000

72,000

50

110

163

197

227

72,000

74,000

55

121

179

215

249

74,000

76,000

60

131

195

235

271

76,000

78,000

64

142

211

254

293

78,000

80,000

69

153

227

272

315

80,000

85,000

78

172

254

306

353

85,000

90,000

90

198

295

353

408

90,000

95,000

102

225

334

401

463

95,000

100,000

114

252

373

449

518

100,000

110,000

133

292

433

520

600

110,000

120,000

157

345

513

615

710

120,000

130,000

181

399

592

710

820

130,000

140,000

206

452

671

805

931

140,000

150,000

230

506

750

901

1,040

150,000

160,000

254

559

830

996

1,150

160,000

170,000

279

612

909

1,091

1,260

170,000

180,000

303

666

988

1,186

1,370

180,000

190,000

327

720

1,067

1,281

1,480

190,000

200,000

351

773

1,147

1,377

1,589

200,000

210,000

376

826

1,227

1,471

1,700

210,000

220,000

400

880

1,306

1,566

1,810

220,000

230,000

424

934

1,385

1,661

1,920

230,000

240,000

449

987

1,464

1,757

2,029

240,000

and over

473

1,040

1,544

1,852

2,139

 


 

1    Rev. Proc. 2020-37