Bunting tripp & Ingley - certified public accounts

IRS releases 2013 depreciation deduction tables

March 16th, 2013

The IRS has issued the annual tables for the depreciation deductions available to owners of passenger automobiles, trucks and vans first placed in service during calendar year 2013.

For passenger automobiles, the deduction limitations for the first three tax years are $3,160 ($11,160 if bonus depreciation applies); $5,100; and $3,050, respectively. The deduction limitation is $1,875 for each succeeding year.

For trucks and vans first placed in service in 2013, the depreciation limitations for the first three years are $3,360 ($11,360 if bonus depreciation applies); $5,400; and $3,250, respectively. The limitation amount is $1,975 for each succeeding year. (Revenue Procedure 2013-21)

For leased passenger automobiles and for trucks and vans, a reduction in the deduction allowed to the lessee is required. This reduction requires the lessee to include in gross income an amount determined by applying a formula.

The inclusion amount varies with the fair market value of the vehicle. The IRS provides tables showing the applicable inclusion amounts.

The technical information here is necessarily brief. No final conclusion on these topics should be drawn without further review and consultation. Please be advised that, based on current IRS rules and standards, the information contained herein is not intended to be used, nor can it be used, for the avoidance of any tax penalty assessed by the IRS.

© 2013, CPAmerica International. All Rights Reserved.