IRS Issues Inflation Updates for Automobile Depreciation Deduction Limits


The IRS issued Revenue Procedure 2009-24 on Thursday that provides 2009 inflation adjustments to the depreciation limitations and lease inclusion amounts for certain automobiles under IRC §§ 280F and 168. For passenger automobiles (other than trucks or vans) placed in service during calendar 2009, the 2009 depreciation limit under IRC § 280F(d)(7) is $2,960 for the first tax year ($10,960 for a car to which 50% bonus depreciation under section 168(k) applies), $4,800 for the second tax year, $2,850 for the third year and $1,775 for each successive year. Higher limits are provided for trucks and vans.

 

IRC § 280F(c) likewise limits deductions for the cost of leasing automobiles, expressed as an income inclusion amount according to a formula and tables prescribed under Treas. Reg. 1.280F-7. The revenue procedure provides an updated table of the amounts to be included in income by lessees of passenger automobiles and another for trucks and vans, in both cases with lease terms that begin in calendar 2009.

 

SPONSORED REPORT

States look to unclaimed property for revenue

This free report outlines the escheat process, common types of AUP, how different states are handling it and how companies can plan for potential audits and liabilities.

PODCAST

Using drones to enhance audits

Hermann Sidhu, CPA, global assurance digital leader at EY, walks us through EY’s exciting new project to use drones to help audit large warehouses and outdoor inventories.