Automobile Depreciation Deduction Limits
The IRS has updated its limitations on depreciation deductions for owners of passenger automobiles first placed in service during 2011 and the amounts to be inlcuded in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2011.
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 $3,260 for the first tax year, $5,200 for the second, $3,150 for the third, and $1,875 for each successsive tax year.
Valuing employer-provided vehicles in 2011
(1) The maximum value of employer-provided vehicles first made available to employees for personal use in calendar year 2011 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 $16,200 for a truck or van. The business standard mileage rate was $.51 from January 1, 2011 through June 30th and $.555 through December 31st. The $.555 also continues into 2012.
Annual Lease Value Table