The 2019 limit annual depreciation deductions for luxury car depreciation caps for a passenger cars, SUV’s, trucks, and vans.
The luxury car depreciation caps for a passenger car placed in service in 2019 limit annual depreciation deductions to:
The depreciation caps for SUVs, trucks. and vans placed in service in 2019 limit annual depreciation deductions to:
If depreciation exceeds the annual cap, the excess depreciation is deducted beginning in the year after the vehicle’s regular depreciation period ends. The annual cap for this excess depreciation is:
If a vehicle is first leased in 2019, a taxpayer must add a lease inclusion amount to gross income in each year of the lease if its fair market value at the time of the lease is more than:
The 2019 lease inclusion tables provide the lease inclusion amounts for each year of the lease.
The lease inclusion amount results in a permanent reduction in the taxpayer’s deduction for the lease payments.
The depreciation caps and lease inclusion amounts do not apply to:
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