2006 Auto Depreciation Limits

Guidance Issued on Vehicle Depreciation Deduction Limits (Rev. Proc. 2006-18)

Tables indicating limitations on depreciation deductions for owners of passenger automobiles, including electric automobiles, trucks and vans first placed in service during calendar year 2006, have been issued by the IRS. Also provided are tables indicating the amounts to be included in income for vehicles first leased during calendar year 2006.

For passenger automobiles first placed in service in 2006, the depreciation limitations for the three tax years are $2,960, $4,800 and $2,850, respectively and $1,775 for each succeeding year. For trucks and vans first placed in service in 2006, the depreciation limitations for the three tax years are $3,260, $5,200 and $3,150, respectively. The limitation is $1,875 for each year thereafter. For electric automobiles first placed in service in 2006, the depreciation limitations for the three tax years are $8,980, $14,400 and $8,650, respectively, and $5,225 for each year thereafter.

Rev. Proc. 2006-18, 2006FED ¶46,367

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