Passenger automobiles are 4-wheeled vehicles manufactured primarily for use on public roads that are rated at 6,000 pounds unloaded gross vehicle weight or less
The Tax Cuts and Jobs Act changed depreciation limits for passenger vehicles placed in service after December 31, 2017.
If the taxpayer doesn’t claim bonus depreciation, the greatest allowable depreciation deduction is:
- $10,000 for the first year
- $16,000 for the second year
- $9,600 for the third year
- $5,760 for each later taxable year in the recovery period
If a taxpayer claims 100 percent bonus depreciation, the greatest allowable depreciation deduction limit is:
- $18,000 for the first year
- $16,000 for the second year
- $9,600 for the third year
- $5,760 for each later taxable year in the recovery period
You can claim the section 179 deduction and a special depreciation allowance for listed property such as automobiles if:
- predominantly used for qualified business (more than 50% of its total use)
- Gross Vehicle Weight (GVW) is more that 6,000 pounds unloaded