2015 Listed Property Limits for Autos, Trucks & Vans

Tax practitioners often times tend to judge each other by the quality of our client's respective asset lists and depreciation schedules. Truth is MANY practitioners get listed property limits WRONG because they simply do not understand the limits. Hence this post to help us all be on the same page!

First things first however, as of this posting bonus depreciation presently does not exist for 2015. If our child like federally elected representatives can find themselves playing nice together this may very well change, even retroactively. I wouldn't count on that though at the moment as it appears we are headed for another government shut down in December.

Nevertheless according to IRS Revenue Procedure 2015-19 ceilings are provided on the amount of depreciation and §179 deductions that can be claimed on passenger automobiles, light duty trucks and vans under IRC §280F - Limitation on depreciation for luxury automobiles; limitation where certain property used for personal purposes .

The §280F limits for passenger automobiles first placed in service during the calendar year 2015 that are neither trucks nor vans are:

  • Year 1 - $3,160
  • Year 2 - $5,100
  • Year 3 - $3,050
  • Year 4 & after - $1,875

The §280F limits for trucks and vans first placed in service during the calendar year 2015 are:

  • Year 1 - $3,460
  • Year 2 – $5,600
  • Year 3 – $3,350
  • Year 4 & after - $1,975

IMPORTANT POINTS TO REMEMBER

  • These limits for vehicles placed in service beginning in 2015 are multiplied by your business use percentage.
  • The leasehold inclusion for 2015 applies to passenger automobiles when the FMV of the vehicle exceeds $17,500 and applies to light duty trucks and vans when the FMV of the vehicle exceeds $18,500.

John R. Dundon, EA [720-234-1177, John@JohnRDundon.com]. John is a lifelong student of the US Tax Code; enrolled with the United States Treasury Department to practice before the IRS (Enrolled Agent # 00085353); under contract with the IRS as a Certified Individual Taxpayer Identification Number (ITIN) Acceptance Agent; regulated under USC 31 Section 330 & USC 26 Section 7525a.3.A; governed under US Treasury Cir. 230.

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Posted in Asset Classification, Auto, Business Expense, Car expense, Depreciation, Passenger Vehicle

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