The National Directory of Certified Public Accountants

Ask A CPA - 2016 Auto Depreciation Limits

Luxury Automobile Limitation

The current tax law sets a specific annual dollar limitation (adjusted each year for inflation) on the amount of depreciation allowed for any "passenger automobile". generally referred to as the "luxury automobile" limitations. The limitations apply to four-wheeled vehicles that are manufactured primarily for use on public streets, roads, and highways, and that are rated at 6,000 pounds gross vehicle weight (GVW) or less (except for trucks and vans, a vehicle's "unloaded" GVW rating is used).

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