depreciation for luxury vehicles Archives

Auto Depreciation Caps and Lease Inclusion Amounts for 2024

For 2024, the IRS has set new depreciation limits for business-use luxury cars and specific lease inclusion amounts. For vehicles placed in service or leased in 2024, there are distinct caps on depreciation deductions, aimed at managing the cost recovery of high-value vehicles. Vehicles exceeding a certain weight are exempt from these restrictions, encouraging the […]

IRS Issues Luxury Auto Depreciation Caps and Lease Inclusion Amounts

Bailey Scarano Blog, Tax & Money Tips / By Bonnie Buol Ruszczyk

If your business owns or leases luxury vehicles, this could be important to your 2021 tax planning. Luxury Passenger Car Depreciation Caps The luxury car depreciation caps for passenger cars placed in service in 2021 are limited to the following annual depreciation deductions: $10,200 for the first year without bonus depreciation $18,200 for the first year

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