The IRS has published depreciation limits for business vehicles first placed in service this year. The limits for passenger autos remain the same as the 2012 limits, but limits for light trucks and vans have some changes.
Because 50% bonus depreciation is allowed only for new vehicles, the limits are different for new and used vehicles. Here's a quick review.
For new business cars first placed in service this year, the first-year depreciation limit is $11,160; for used cars, it's $3,160. After year one, the limits are the same for both new and used cars: $5,100 in year two, $3,050 in year three, and $1,875 in all following years.
The 2013 first-year depreciation limit for light trucks and vans is $11,360 for new vehicles and $3,360 for used vehicles. Limits for both new and used vehicles in year two are $5,400, in year three $3,250, and in each succeeding year $1,975.
For details relating to your 2013 business vehicle purchases, contact our office.
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NEW View an online version of our 2013 MIDYEAR Tax Planning Letter:
- Client Letter
- Take three steps now to cut your 2013 taxes
- Do some planning if the new Medicare taxes apply to you
- Take another look at health savings accounts
- Estimated Taxes: Who needs to pay them?
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