IRC §280F (listed property) provides ceilings on the amount of depreciation and §179 that can be claimed on passenger automobiles, light duty trucks and vans. The limitations listed below are multiplied by the taxpayer’s business use of the vehicle. The amounts for passenger automobiles placed in service in 2009 differ slightly from the amounts for 2008.
Limits for passenger automobiles
The §280F limits for passenger automobiles first placed in service during the calendar year 2009 that are neither trucks nor vans:
-Year 1 – $2,960 (+$8,000 extra if the 50% bonus depreciation is claimed)
-Year 2 – 4,800
-Year 3 – 2,850
-Year 4 & after – 1,875
Limits for trucks and vans
The §280F limits for trucks and vans first placed in service during the calendar year 2009 have not changed and are:
-Year 1 – $3,060 (+$8,000 extra if the 50% bonus depreciation is claimed)
-Year 2 – 4,900
-Year 3 2,950
-Year 4 & after – 1,775
There are also two lease inclusion tables:
1) passenger automobiles, and
2) light duty trucks and vans.
The inclusion amounts begin when the FMV of the vehicles exceed 1) $18,500 and 2) $18,500, respectively. Although the lease inclusion tables start at the same level, the amounts vary over the years.
The tables can be found in Revenue Procedure 2009-24 which can be found at www.irs.gov/pub/ by clicking on irs-drop and then on rp-09-24 – or in the Resource Box below.
This text has been shared with you courtesy of: David & Mary Mellem, EAs & Ashwaubenon Tax Professionals, 920-496-1065 (fax 920-496-9111) davidmellem@yahoo.com, marymellem@yahoo.com, davidmellemea@yahoo.com, and marymellemea@yahoo.com.
©2009, Ashwaubenon Tax Professionals.
No reproduction of this article is permitted without the express consent of Ashwaubenon Tax Professionals, 2140 Holmgren Way Suite 1040, Green Bay, WI 54304.
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- IRS Rev. Proc. 2009-24 :: Vehicle Depreciation and Lease Inclusions
