IRS Publishes Business Vehicle Deductions Limits

The IRS has published depreciation limits for business vehicles first placed in service this year. Read on for more information regarding your

50% bonus depreciation is no longer allowed for business equipment purchases, including vehicles. Here’s a quick review of the adjustments for 2014.

For business cars first placed in service this year, the first-year depreciation limit is $3,160. After year one, the limits are $5,100 in year two, $3,050 in year three, and $1,875 in all following years.

The 2014 first-year depreciation limit for light trucks and vans is $3,460. Limits for year two are $5,500, in year three $3,350, and in each succeeding year $1,975.

For details relating to your 2014 business vehicle purchases, contact our office. We can be reached at 201-947-8081 or 646-688-2807, or email us at info@bergencountycpa.com.