18. Automobile Depreciation & Leasing
18. Automobile Depreciation & Leasing
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- Tax Analysts Document Number2017-92871
For owners of automobiles, Section 280F(a) imposes dollar limitations on the depreciation deduction for both the year that the automobile is placed in service and each succeeding year. Section 280F(d)(7) requires the amounts allowable as depreciation deductions to be increased by a price inflation adjustment amount for passenger automobiles placed in service after calendar year 1988.
For leased automobiles, Section 280F(c) requires a reduction in the deduction allowed to the lessee. The reduction is substantially equal to the limitations on the depreciation deductions imposed on owners of automobiles. Under Reg. section 1.280F-7(a), this reduction requires a lessee to include in gross income an inclusion amount determined by applying a formula to the amount obtained from a table published each year by the IRS.
In revenue procedures issued on an annual basis, the Service has provided tables containing depreciation limitations for autos placed in service that year and tables listing "inclusion amounts" for autos first leased that year. Below are the revenue procedures providing the depreciation limitations and inclusion amounts dating back to 1992.
Automobile Depreciation Limitations and Income Inclusions | |
Tax Year | Source Document |
2024 | |
2023 | |
2022 | |
2021 | |
2020 | |
2019 | |
2018 | |
2017 | |
2016 | |
2015 | |
2014 | |
2013 | |
2012 | |
2011 | |
2010 | |
2009 | |
2008 | |
2007 | |
2006 | |
2005 | |
2004 | |
2003 | |
2002 | |
2001 | |
2000 | |
1999 | |
1998 | |
1997 | |
1996 | |
1995 | |
1994 | |
1993 | |
1992 |
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- Tax Analysts Document Number2017-92871