Luxury auto depreciation limits announced for 2016

Posted on Jun 7, 2016

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.

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