Rev. Proc. 2024-13: Automobile depreciation deduction limits for 2024

Type
:
Obligation
Tax Area
:
Corporate Income Tax
Status
:
Adopted
Qualification
:
Tax rate change
Implemented date
:
2024-01-01T00:00:00Z
Country
:
US
Date added
6 Feb
,
2024
Docxster’s Summary

The IRS has released the depreciation deduction limits for automobiles for 2024. The limits are $10,000 for the first year, $16,000 for the second year, $9,600 for the third year, and $5,760 for each subsequent year. These limits apply to passenger automobiles, trucks, and vans used for business purposes.

taxAI image
Article

The IRS today released Rev. Proc. 2024-13 that provides the annual depreciation deduction limitations under section 280F for automobiles placed in service in 2024. The section 280F limitations are required to be adjusted for inflation for automobiles placed in service after 2018.

Rev. Proc. 2024-13 [PDF 118 KB] provides:

  • The annual depreciation limitations for passenger automobiles (including trucks and vans) first placed in service in calendar year 2024
  • The income inclusion amounts for passenger automobiles (including trucks and vans) first leased in 2024

The tables listed in Rev. Proc. 2024-13 provide the depreciation limits for automobiles placed in service during 2024:

  • Table 1 provides the depreciation limits for automobiles acquired after September 27, 2017, and placed in service during 2024—thus reflecting the section 168(k) additional first year depreciation deduction (“bonus depreciation”).
  • Table 2 provides the depreciation limits for automobiles placed in service during 2024 for which no bonus depreciation deduction applies.
  • Table 3 provides the dollar amount used by lessees of passenger automobiles with a lease term beginning in 2024 to determine the income inclusion amount for those passenger automobiles, and provides dollar amounts for “a range of fair market values.”

 

 

Corem ipsum dolor sit amet, consectetur adipiscing elit. Nunc vulputate libero et velit interdum, ac aliquet odio mattis. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos. Curabitur tempus urna at turpis condimentum lobortis. Ut commodo efficitur neque. Ut diam quam, semper iaculis condimentum ac, vestibulum eu nisl.Corem ipsum dolor sit amet, consectetur adipiscing elit. Nunc vulputate libero et velit interdum, ac aliquet odio mattis. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos. Curabitur tempus urna at turpis condimentum lobortis. Ut commodo efficitur neque. Ut diam quam, semper iaculis condimentum ac, vestibulum eu nisl.
‍
Corem ipsum dolor sit amet, consectetur adipiscing elit. Nunc vulputate libero et velit interdum, ac aliquet odio mattis. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos. Curabitur tempus urna at turpis condimentum lobortis. Ut commodo efficitur neque. Ut diam quam, semper iaculis condimentum ac, vestibulum eu nisl.Corem ipsum dolor sit amet, consectetur adipiscing elit. Nunc vulputate libero et velit interdum, ac aliquet odio mattis. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos. Curabitur tempus urna at turpis condimentum lobortis. Ut commodo efficitur neque. Ut diam quam, semper iaculis condimentum ac.
‍
Corem ipsum dolor sit amet, consectetur adipiscing elit. Nunc vulputate libero et velit interdum, ac aliquet odio mattis. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos. Curabitur tempus urna at turpis condimentum lobortis. Ut commodo efficitur neque. Ut diam quam, semper iaculis condimentum ac, vestibulum eu nisl.Corem ipsum dolor sit amet, consectetur adipiscing elit. Nunc vulputate libero et velit interdum, ac aliquet odio mattis. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos. Curabitur tempus urna at turpis condimentum lobortis. Ut commodo efficitur neque. Ut diam quam, semper iaculis condimentum ac.

Source :
KPMG
Arrow icon
KPMG
arrow
Docxster’s Blogs
We’ve Got Big News: Docxster is Now GDPR Compliant!
Ramzy Sayed
26/8/2024