2023 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 2023 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 2023,
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).
ABLE 1. DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES ACQUIRED AFTER SEPTEMBER 27, 2017, AND PLACED IN SERVICE DURING CALENDAR YEAR 2023, FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES | |
Tax Year | Amount |
1st Tax Year | $20,200 |
2nd Tax Year | $19,500 |
3rd Tax Year | $11,700 |
Each Succeeding Year | $6,960 |
TABLE 2. DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES ACQUIRED AFTER SEPTEMBER 27, 2017, AND PLACED IN SERVICE DURING CALENDAR YEAR 2023 FOR WHICH NO § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES | |
Tax Year | Amount |
1st Tax Year | $12,200 |
2nd Tax Year | $19,500 |
3rd Tax Year | $11,700 |
Each Succeeding Year | $6,960 |
TABLE 3. DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2023 | ||||||
Fair Market Value of Passenger Automobile | Tax Year During Lease | |||||
Over | Not Over | 1st | 2nd | 3rd | 4th | 5th & later |
60,000 | $62,000 | 0 | 0 | 1 | 3 | 5 |
62,000 | 64,000 | 13 | 29 | 43 | 54 | 63 |
64,000 | 66,000 | 26 | 57 | 86 | 104 | 122 |
66,000 | 68,000 | 39 | 86 | 128 | 154 | 181 |
68,000 | 70,000 | 52 | 114 | 170 | 206 | 239 |
70,000 | 72,000 | 65 | 143 | 212 | 256 | 297 |
72,000 | 74,000 | 78 | 171 | 255 | 306 | 356 |
74,000 | 76,000 | 91 | 200 | 296 | 358 | 414 |
76,000 | 78,000 | 104 | 228 | 339 | 408 | 473 |
78,000 | 80,000 | 117 | 257 | 381 | 459 | 531 |
80,000 | 85,000 | 140 | 306 | 455 | 548 | 634 |
85,000 | 90,000 | 172 | 378 | 560 | 674 | 780 |
90,000 | 95,000 | 204 | 449 | 666 | 801 | 926 |
95,000 | 100,000 | 237 | 520 | 772 | 927 | 1,073 |
100,000 | 110,000 | 286 | 627 | 930 | 1,117 | 1,292 |
110,000 | 120,000 | 350 | 769 | 1,142 | 1,371 | 1,584 |
120,000 | 130,000 | 415 | 912 | 1,353 | 1,623 | 1,877 |
130,000 | 140,000 | 480 | 1,054 | 1,564 | 1,877 | 2,169 |
140,000 | 150,000 | 545 | 1,196 | 1,776 | 2,130 | 2,462 |
150,000 | 160,000 | 610 | 1,339 | 1,986 | 2,384 | 2,754 |
160,000 | 170,000 | 675 | 1,481 | 2,198 | 2,637 | 3,046 |
170,000 | 180,000 | 740 | 1,623 | 2,409 | 2,891 | 3,338 |
180,000 | 190,000 | 805 | 1,766 | 2,620 | 3,143 | 3,632 |
190,000 | 200,000 | 870 | 1,908 | 2,831 | 3,397 | 3,924 |
200,000 | 210,000 | 935 | 2,050 | 3,043 | 3,650 | 4,216 |
210,000 | 220,000 | 999 | 2,193 | 3,254 | 3,903 | 4,509 |
220,000 | 230,000 | 1,064 | 2,335 | 3,465 | 4,157 | 4,801 |
230,000 | 240,000 | 1,129 | 2,478 | 3,676 | 4,410 | 5,094 |
240,000 | and over | 1,194 | 2,620 | 3,887 | 4,664 | 5,386 |
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1 Rev. Proc. 2023-14
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