The IRS recently issued the depreciation limits for business vehicles you buy and place into service this year. For cars, if 50% bonus depreciation does not apply, the first year limit is $3,160. If bonus depreciation applies to a business car, the first year limit is $11,160. For light trucks and vans first placed into service in 2016, the limit is $3,560 if bonus depreciation does not apply and $11,560 if bonus depreciation does apply. Heavy SUVs (vehicles built on a truck chassis and rated at more than 6,000 pounds gross weight) are exempt from “luxury auto” depreciation limits.
Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in the McLean and Tysons Corner, VA. Gilliland & Associates specializes known for our superior knowledge and aggressive interpretation and application of tax laws, we help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+, LinkedIn, Facebook, and Twitter.