Available now: Vehicle depreciation deductions for 2012

In a new revenue procedure, the IRS has issued the annual tables for the depreciation deductions available to owners of passenger automobiles, trucks and vans first placed in service during calendar year 2012.

  • For passenger automobiles, the deduction limitations for the first three tax years are $3,160 ($11,160 if bonus depreciation applies), $5,100 and $3,050, respectively, and $1,875 for each succeeding year.
  • For trucks and vans, the depreciation limitations for the first three years are $3,360 ($11,360 if bonus depreciation applies), $5,300 and $3,150, respectively, and $1,875 for each succeeding year.
  • For leased vehicles, a reduction in the deduction allowed to the lessee is required. This reduction requires the lessee to include in gross income an amount determined by applying a formula. The inclusion amount varies with the fair market value of the vehicle. The IRS provides tables showing the applicable inclusion amounts.

Read more in Rev. Proc. 2012-23.

 
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