IRS Update On Depreciation Limits For Passenger Automobiles
The IRS has just issued its annual inflation-adjusted update of depreciation limits for passenger automobiles (including vans and trucks). For passenger automobiles to which bonus first-year depreciation deduction applies and that are acquired after Sept. 27, 2017, and placed in service during the calendar year 2021, the depreciation limit under Sec. 280F(d)(7) is $18,200 for the first tax year (an increase of $100 from 2020); $16,400 for the second tax year (an increase of $300); $9,800 for the third tax year (an increase of $100); and $5,860 for each succeeding year (an increase of $100).
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