Friday, April 8, 2016

Vehicle First-Year Depreciation Limits Rise for 2016

The first-year depreciation deduction limits for owners of vehicles placed in service this year are $8,000 higher than they were for 2015: $11,160 for passenger automobiles and $11,560 for trucks and vans, the IRS said.
In Revenue Procedure 2016-23 released on April 1, the IRS said the amounts reflect provisions of the 2015 Protecting Americans from Tax Hikes Act, which raised the first-year depreciation limits. The limitation for vehicles for which the bonus depreciation deduction doesn't apply remains at $3,160 for passenger vehicles and rises $100 to $3,560 for trucks and vans.
The Revenue Procedure also revises the tables of depreciation limitations and lessee inclusion amounts for automobiles first placed in service or leased during 2015 and to which the 50 percent bonus depreciation applies as extended by the PATH Act.
The revenue procedure is to appear in Internal Revenue Bulletin 2016-16.

No comments: