Revenue Procedure 2016-23: Limitations on Depreciation Deductions for Owners of Passenger Automobiles First Placed in Service in 2016
The Protecting Americans from Tax Hikes Act of 2015 (the Act), enacted as part of the Consolidated Appropriations Act, 2016, required some adjustments to be made when calculating the additional first years depreciation as well as the inclusion for leased vehicles. The updated amounts are detailed below.
Depreciation Limitations for Passenger Automobiles (that are not trucks or vans) placed in service in the calendar year 2016 for which the § 168(k) Additional First Year Depreciation Deduction Applies:
| Tax Year | Amounts for 2015 | Amounts for 2016 |
|---|---|---|
| Year 1 | $11,160 | $11,160 |
| Year 2 | $ 5,100 | $ 5,100 |
| Year 3 | $ 3,050 | $ 3,050 |
| Each Succeeding Year | $ 1,875 | $ 1,875 |
Depreciation Limitations for Trucks and Vans placed in service in the calendar year 2016 for which the § 168(k) Additional First Year Depreciation Deduction Applies:
| Tax Year | Amount for 2015 | Amounts for 2016 |
|---|---|---|
| Year 1 | $11,460 | $11,560 |
| Year 2 | $ 5,600 | $ 5,700 |
| Year 3 | $ 3,350 | $ 3,350 |
| Each Succeeding Year | $ 1,975 | $ 2,075 |
Depreciation Limitations for Passenger Automobiles (that are not trucks or vans) placed in service in the calendar year 2016 for which the § 168(k) Additional First Year Depreciation Does Not Apply:
| Tax Year | Amount for 2016 |
|---|---|
| Year 1 | $ 3,160 |
| Year 2 | $ 5,100 |
| Year 3 | $ 3,050 |
| Each Succeeding Year | $ 1,875 |
Depreciation Limitations for Trucks and Vans placed in service in the calendar year 2016 for which the § 168(k) Additional First Year Depreciation Does Not Apply:
| Tax Year | Amount for 2016 |
|---|---|
| Year 1 | $ 3,560 |
| Year 2 | $ 5,700 |
| Year 3 | $ 3,350 |
| Each Succeeding Year | $ 2,075 |