For business owners who own a company vehicle, there are some new tax write-off figures to be aware of.
The IRS last month issued the 2017 inflation adjustments to the depreciation limitations for certain business vehicles. The new depreciation amounts are for vehicles that are placed in service in 2017 and to which first-year bonus depreciation applies.
For passenger automobiles placed in service in 2017, the depreciation limit is $11,160 for the first tax year – including bonus depreciation – and $3,160 if bonus depreciation does not apply. The new limits are $5,100 for the second tax year, $3,050 for the third tax year, and $1,875 for each successive tax year.
For trucks and vans, the limit is $11,560 for the first tax year if bonus depreciation applies and $3,560 if it does not apply. The new limits are $5,700 for the second tax year, $3,450 for the third tax year, and $2,075 for each successive tax year.
