2012 auto depreciation limits
The IRS has released the dollar limits for depreciation on vehicles placed in service in 2012 that fall under the luxury auto limits, meaning that the vehicles weigh 6,000 pounds or less unloaded. Two sets of limits relate to passenger autos which are not trucks or vans. The other two are for light trucks, vans, and passenger autos that are built on a truck chassis, and include minivans and sport-utility vehicles.
For those which are not subject to bonus depreciation rules (meaning the auto is pre-owned, not used for more than 50 percent business purposes, or an election has been made to opt out of the bonus), annual depreciation limits are:
- $3,160 – first year placed in service
- $5,100 – second tax year
- $3,050 – third tax year
- $1,875 – each subsequent tax year
If bonus depreciation does apply, then $11,160 is allowed for the first year in service, $5,100 for the second tax year, $3,050 for the third tax year, and finally $1,875 for each subsequent tax year.
Light trucks or vans
If bonus depreciation does not apply, then annual depreciation is limited to $3,360 for the first year placed in service, $5,300 for the second tax year, $3,150 for the third tax year, and $1,875 for any succeeding tax years.
However, if bonus depreciation rules do apply, then $11,360 is allowed for the first year placed in service, $5,300 for the second tax year, $3,150 for the third tax year, and $1,875 for each subsequent tax year.