Don't overlook these!
Updated for 2012
Cars, light trucks, vans, and SUVs weight-rated 6,000 pounds or less unloaded are subject to annual depreciation ceilings (limits).
When discussing depreciation, whether it's MACRS depreciation, bonus depreciation, or the Section 179 first-year expensing deduction, vehicles weight-rated 6,000 pounds or less are treated differently than other types of depreciable business property, including SUVs and trucks weighing more than 6,000.
Depending on the type of depreciable business property, annual depreciation deductions may be limited to a specific amount.
Annual Depreciation Ceilings for Passenger Cars, Light Trucks, Vans, and SUVs weight-rated 6,000 or Less:
For passenger cars, light trucks, vans, and SUVs weight-rated 6,000 pounds or less, the annual depreciation ceilings for 2012 are:
A passenger car is defined as any four-wheeled vehicle that is manufactured primarily for use on public streets, roads and highways and is weight-rated by the manufacturer at 6,000 pounds or less when unloaded (without passengers or cargo).
Bonus Depreciation for Passenger Cars, Light Trucks, Vans, and SUVs weight-rated 6,000 or Less:
The first-year bonus depreciation deduction for 2012 for passenger cars, light trucks, vans, and SUVs 6,000 pounds or less is $8,000. The $8,000 bonus depreciation gets added to the regular annual depreciation ceilings.
By adding bonus depreciation to the regular annual depreciation ceilings, the annual ceiling is increased to:
Depreciation for Heavy Trucks and SUVs Weight-Rated More than 6,000 Pounds:
Car Expenses-Depreciation: Electric cars
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