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Rev. Proc. 2019-26: Automobile depreciation deduction limits for 2019

Automobile depreciation deduction limits for 2019

The IRS today released an advance version of Rev. Proc. 2019-26—a revenue procedure that the IRS releases annually to provide:

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  • The annual depreciation limitations for passenger automobiles (including trucks and vans) first placed in service in calendar year 2019
  • The lease inclusion amounts for automobiles first leased in 2019 (as well as amounts for trucks and vans first leased in 2019)

Tables in Rev. Proc. 2019-26

The tables in listed in Rev. Proc. 2019-26 [PDF 49 KB] provide the depreciation limits for automobiles placed in service during 2019:

  • Table 1 provides the depreciation limits for automobiles acquired before September 28, 2017, and placed in service during 2019—thus reflecting the section 168(k) additional first year depreciation deduction.
  • Table 2 provides the depreciation limits for automobiles acquired after September 27, 2017, and placed in service during 2019—thus reflecting the additional first year depreciation deduction.
  • Table 3 provide the depreciation limit for automobiles placed in service during 2019 for which no additional first year depreciation deduction applies (that is, when the taxpayer does not use the automobile during 2019 more than 50% for business purposes, or elected out of the additional first year depreciation deduction, or acquired a used automobile that fails to satisfy the statutory rules).
  • Table 4 applies to lessees of passenger automobiles, and shows income inclusion amounts for “a range of fair market values” for each tax year after the automobile is first leased.

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