IRS Issues 2019 Depreciation Deduction Limits for Passenger Automobiles

May 21, 2019
Kristine A. Tidgren

On May 21, 2019, IRS issued Rev. Proc. 2019-26, which updated depreciation deduction limits for passenger automobiles purchased after September 27, 2017, and placed into service during 2019.

No Bonus Depreciation

The revenue procedure specifies that the amount of the depreciation and expensing deduction for a passenger car or light duty truck or van where bonus depreciation is not taken shall not exceed—

  • $10,100 for the 1st taxable year in the recovery period,
  • $16,100 for the 2nd taxable year in the recovery period,
  • $9,700 for the 3rd taxable year in the recovery period, and
  • $5,760 for each succeeding taxable year in the recovery period.

Bonus Depreciation Taken

Rev. Proc. 2019-26 also specifies that the amount of the depreciation and expensing deduction for a passenger car or light duty truck or van where bonus depreciation is taken shall not exceed—

  • $18,100 for the 1st taxable year in the recovery period,
  • $16,100 for the 2nd taxable year in the recovery period,
  • $9,700 for the 3rd taxable year in the recovery period, and
  • $5,760 for each succeeding taxable year in the recovery period.

Acquired before September 28, 2017, and Placed in Service in 2019

If a taxpayer acquired a passenger vehicle before September 28, 2017, but did not place it into service until 2019, the numbers are different where bonus depreciation is taken:

  • $14,900 for the 1st taxable year in the recovery period,
  • $16,100 for the 2nd taxable year in the recovery period,
  • $9,700 for the 3rd taxable year in the recovery period, and
  • $5,760 for each succeeding taxable year in the recovery period.

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