Automobile Depreciation Deduction Limits
The IRS has updated its limitations on depreciation deductions for owners of passenger automobiles first placed in service during 2010 and the amounts to be inlcuded in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2010.
For passenger autos the depreciation limit is $3,060 for the first tax year, $4,900 for the second tax year, $2,950 for the third tax year, and $1,775 for each successive tax year. Trucks and vans are $3,160 for the first tax year, $5,100 for the second, $3,050 for the third, and $1,875 for each successsive tax year.
Lease tables and further details on deductions can be found at IRS Rev. Proc. 2010-18.
Valuing employer-provided vehicles in 2010
(1) The maximum value of employer-provided vehicles first made available to employees for personal use in calendar year 2010 for which the vehicle cents-per-mile valuation rule provided under section 1.61-21(e) of the Income Tax Regulations may be applicable is $15,300 for a passenger automobile and $16,000 for a truck or van; (2) the maximum value of employer-provided vehicles first made available to employees for personal use in calendar year 2010 for which the fleet-average valuation rule provided under section 1.61-21(d) of the regulations may be applicable is $20,300 for a passenger automobile and $21,000 for a truck or van.