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NEWS: 2019 Vehicle Depreciation Limits and Income Inclusions Issued

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The IRS has provided the limitations on depreciation deductions for passenger automobiles, which include trucks and vans, first placed in service in 2019 and the amounts of income inclusion for lessees of passenger automobiles first leased during 2019 (Rev. Proc. 2019-26). These amounts are inflation-adjusted using the automobile component of the chained consumer price index for all urban consumers.

  • For passenger automobiles that were acquired before Sept. 28, 2017, and placed in service during calendar year 2019, the depreciation limit is $14,900 for the first tax year; $16,100 for the second tax year; $9,700 for the third tax year; and $5,760 for each succeeding year.
  • For passenger automobiles that are acquired after Sept. 27, 2017, and placed in service during calendar year 2019, the depreciation limit is $18,100 for the first tax year; $16,100 for the second tax year; $9,700 for the third tax year; and $5,760 for each succeeding year.
  • For passenger automobiles for which no Sec. 168(k) additional (bonus) first-year depreciation deduction applies, the depreciation limit is $10,100 for the first tax year; $16,100 for the second tax year; $9,700 for the third tax year; and $5,760 for each succeeding year.
  • For leased automobiles, the IRS limits deductions for the cost of leasing automobiles, expressed as an income inclusion amount, according to a formula and tables prescribed under Regs. Sec. 1.280F-7. You can find the income inclusion amounts here.

Your BGW CPA, PLLC team is available to answer your specific questions.

 

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