Tax

IRS Announces 2010 Depreciation Limitations for Luxury Automobiles

Posted by AICPA 2/26/10

In Revenue Procedure 2010-18, the IRS released the inflation adjusted depreciation limitations for luxury automobiles. The revenue procedure provides the maximum amount of depreciation for passenger automobiles placed into service in calendar year 2010 and income inclusion amounts for leased automobiles. There are also separate tables provided for limitations applicable to trucks and vans.


REV. PROC. 2010-18 TABLE 1

DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR

Tax Year	Amount
1st Tax Year	$3,060
2nd Tax Year	$4,900
3rd Tax Year	$2,950
Each Succeeding Year	$1,775

REV. PROC. 2010-18 TABLE 2

DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2010

Tax Year	Amount
1st Tax Year	$3,160
2nd Tax Year	$5,100
3rd Tax Year	$3,050
Each Succeeding Year	$1,875