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2009 Luxury Auto Depreciation Limits, Tables and Explanations

Tax law considers vehicles costing more than about $15,000 luxuries.

 

To make sure you are not getting more than your fair share of deductions on your vehicles, the law limits the amount you can deduct for depreciation and Section 179 expensing of your car, truck or van (your airplane suffers no such indignity).

 

You can escape the luxury limits with certain more than 6,000 pound gross-vehicle-weight-rated vehicles (GVWR).

 

The maximum amount you can deduct each year depends on the year you place the car in service. The 2009 luxury vehicle tables appear below.1 The tables show

 

·

Limitations on depreciation deductions for owners of passenger autos, trucks and vans first placed in service by the taxpayer in 2009, and

 

·

The amounts to be included in income by lessees of passenger autos, trucks and vans first leased by the taxpayer in 2009.

 

To stay on top these and future tax law changes, we suggest that you read the monthly articles published online at the Bradford Tax Institute. We provide cutting-edge tax information for the self-employed, the one owner business, and the husband and wife owned business.

 

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TABLE 1

Luxury Depreciation Limit for USED Passenger Autos (not Trucks or Vans) Placed in Service in Calendar Year 2009

Tax Year

Amount

1st Tax Year

$2,960

2nd Tax Year

$4,800

3rd Tax Year

$2,850

Each Succeeding Year

$1,775

 

 

TABLE 2

Luxury Depreciation Limit for NEW Passenger Autos (not Trucks or Vans) Placed in Service in Calendar Year 2009

Tax Year

Amount

1st Tax Year

$10,960

2nd Tax Year

$4,800

3rd Tax Year

$2,850

Each Succeeding Year

$1,775

 

 

TABLE 3

Luxury Depreciation Limit for USED Trucks and Vans Placed in Service in Calendar Year 2009

Tax Year

Amount

1st Tax Year

$3,060

2nd Tax Year

$4,900

3rd Tax Year

$2,950

Each Succeeding Year

$1,775

 

 

TABLE 4

Luxury Depreciation Limit for NEW Trucks and Vans Placed in Service in Calendar Year 2009

Tax Year

Amount

1st Tax Year

$11,060

2nd Tax Year

$4,900

3rd Tax Year

$2,950

Each Succeeding Year

$1,775

 

2009 Auto Depreciation Tables for Leased Autos

 

If you lease a vehicle, the annual deduction for lease payments must be reduced according to the tables below to take into account the limitations placed on depreciation deductions.

 

TABLE 5

Dollar Amounts for Passenger Automobiles (not Trucks or Vans) with a Lease Term Beginning in Calendar Year 2009

Fair Market Value of Passenger Automobile

Tax Year During Lease

Over

Not Over

1st

2nd

3rd

4th

5th & later

$18,500

$19,000

9

19

28

34

38

19,000

19,500

10

21

32

38

43

19,500

20,000

11

24

36

42

48

20,000

20,500

12

27

39

46

54

20,500

21,000

13

29

43

51

58

21,000

21,500

15

31

47

55

64

21,500

22,000

16

34

50

60

68

22,000

23,000

17

38

56

66

76

23,000

24,000

20

42

64

75

86

24,000

25,000

22

47

71

84

96

25,000

26,000

24

52

78

93

107

26,000

27,000

26

58

85

101

117

27,000

28,000

29

62

93

110

127

28,000

29,000

31

67

100

119

138

29,000

30,000

33

72

108

128

147

30,000

31,000

35

77

115

137

157

31,000

32,000

38

82

122

146

167

32,000

33,000

40

87

129

155

178

33,000

34,000

42

92

137

163

188

34,000

35,000

44

97

144

172

199

35,000

36,000

47

102

151

181

208

36,000

37,000

49

107

159

189

219

37,000

38,000

51

112

166

199

228

38,000

39,000

53

117

173

208

239

39,000

40,000

56

122

180

216

250

40,000

41,000

58

127

188

225

259

41,000

42,000

60

132

195

234

269

42,000

43,000

62

137

203

242

280

43,000

44,000

65

141

210

252

290

44,000

45,000

67

146

218

260

300

45,000

46,000

69

151

225

269

311

46,000

47,000

71

157

232

278

320

47,000

48,000

74

161

240

286

331

48,000

49,000

76

166

247

296

340

49,000

50,000

78

171

255

304

351

50,000

51,000

80

176

262

313

361

51,000

52,000

83

181

269

322

371

52,000

53,000

85

186

276

331

381

53,000

54,000

87

191

284

339

392

54,000

55,000

89

196

291

349

401

55,000

56,000

92

201

298

357

412

56,000

57,000

94

206

306

365

423

57,000

58,000

96

211

313

375

432

58,000

59,000

98

216

320

384

442

59,000

60,000

101

221

327

393

452

60,000

62,000

104

228

339

406

467

62,000

64,000

109

238

353

424

488

64,000

66,000

113

248

368

441

509

66,000

68,000

118

258

382

459

529

68,000

70,000

122

268

397

476

550

70,000

72,000

127

277

413

493

570

72,000

74,000

131

288

427

511

590

74,000

76,000

136

297

442

529

610

76,000

78,000

140

307

457

546

631

78,000

80,000

145

317

471

564

651

80,000

85,000

152

335

497

595

686

85,000

90,000

164

359

534

639

737

90,000

95,000

175

384

570

683

789

95,000

100,000

186

409

607

727

839

100,000

110,000

203

446

662

793

916

110,000

120,000

226

495

736

881

1,018

120,000

130,000

248

545

809

970

1,119

130,000

140,000

271

594

883

1,058

1,220

140,000

150,000

293

644

956

1,146

1,322

150,000

160,000

316

693

1,030

1,234

1,424

160,000

170,000

338

743

1,103

1,322

1,526

170,000

180,000

361

792

1,177

1,410

1,628

180,000

190,000

383

842

1,250

1,498

1,730

190,000

200,000

406

891

1,324

1,586

1,831

200,000

210,000

428

941

1,397

1,675

1,932

210,000

220,000

451

990

1,471

1,762

2,035

220,000

230,000

473

1,040

1,544

1,851

2,136

230,000

240,000

496

1,089

1,618

1,939

2,238

240,000

And up

518

1,139

1,691

2,027

2,340

 

 

TABLE 6

Dollar Amounts for Trucks and Vans with a Lease Term Beginning in Calendar Year 2009

Fair Market Value of Truck or Van

Tax Year During Lease

Over

Not Over

1st

2nd

3rd

4th

5th & later

$18,500

$19,000

8

17

25

30

35

19,000

19,500

9

19

29

35

40

19,500

20,000

10

22

33

38

45

20,000

20,500

11

25

36

43

50

20,500

21,000

12

27

40

48

55

21,000

21,500

13

30

43

52

60

21,500

22,000

15

32

47

56

66

22,000

23,000

16

36

52

64

72

23,000

24,000

18

41

60

72

83

24,000

25,000

21

45

68

81

93

25,000

26,000

23

50

75

90

103

26,000

27,000

25

56

82

98

114

27,000

28,000

27

61

89

107

124

28,000

29,000

30

65

97

116

134

29,000

30,000

32

70

104

125

144

30,000

31,000

34

75

112

134

154

31,000

32,000

36

80

119

143

164

32,000

33,000

39

85

126

151

175

33,000

34,000

41

90

134

160

184

34,000

35,000

43

95

141

169

195

35,000

36,000

45

100

148

178

205

36,000

37,000

48

105

155

187

215

37,000

38,000

50

110

163

195

226

38,000

39,000

52

115

170

204

236

39,000

40,000

55

120

177

213

246

40,000

41,000

57

125

185

221

256

41,000

42,000

59

130

192

231

266

42,000

43,000

61

135

199

240

276

43,000

44,000

64

139

207

249

286

44,000

45,000

66

144

215

257

296

45,000

46,000

68

149

222

266

307

46,000

47,000

70

155

229

274

317

47,000

48,000

73

159

237

283

327

48,000

49,000

75

164

244

292

338

49,000

50,000

77

169

251

301

348

50,000

51,000

79

174

259

310

357

51,000

52,000

82

179

266

318

368

52,000

53,000

84

184

273

328

378

53,000

54,000

86

189

281

336

388

54,000

55,000

88

194

288

345

399

55,000

56,000

91

199

295

354

408

56,000

57,000

93

204

302

363

419

57,000

58,000

95

209

310

371

429

58,000

59,000

97

214

317

381

439

59,000

60,000

100

219

324

389

450

60,000

62,000

103

226

336

402

465

62,000

64,000

107

236

351

420

485

64,000

66,000

112

246

365

438

505

66,000

68,000

116

256

380

455

526

68,000

70,000

121

266

394

473

546

70,000

72,000

125

276

409

491

566

72,000

74,000

130

286

423

509

586

74,000

76,000

134

296

438

526

607

76,000

78,000

139

305

454

543

627

78,000

80,000

143

316

467

561

648

80,000

85,000

151

333

493

592

684

85,000

90,000

163

357

531

635

735

90,000

95,000

174

382

567

680

785

95,000

100,000

185

407

604

724

836

100,000

110,000

202

444

659

790

912

110,000

120,000

225

493

733

878

1,014

120,000

130,000

247

543

806

966

1,116

130,000

140,000

270

592

880

1,054

1,218

140,000

150,000

292

642

953

1,143

1,319

150,000

160,000

315

691

1,027

1,230

1,421

160,000

170,000

337

741

1,100

1,319

1,522

170,000

180,000

360

790

1,174

1,407

1,624

180,000

190,000

382

840

1,247

1,495

1,726

190,000

200,000

405

889

1,321

1,583

1,828

200,000

210,000

427

939

1,394

1,671

1,930

210,000

220,000

450

988

1,468

1,759

2,031

220,000

230,000

472

1,038

1,541

1,847

2,134

230,000

240,000

495

1,087

1,615

1,935

2,235

240,000

and up

517

1,137

1,688

2,024

2,336

 

 


 

1    Rev. Proc. 2009-24.