Wednesday, March 7, 2012

NEW VEHICLE RATES

Each year, IRS issues the amounts that can be claimed as depreciation for vehicles placed into service that year, over their useful lives. As has been the case since these Luxury Vehicle rules were implemented in 1984, they do not apply to vehicles weighing more than 6,000 pounds gross vehicle weight (GVW).

The IRS has just issued the following amounts for business vehicles placed into service during 2012.

Passenger Automobiles:
Year 1 – $3,160 ($11,160 if bonus depreciation applies)
Year 2 – $5,100
Year 3 – $3,050
Year 4 and on – $1,875 per year


Trucks and Vans:
Year 1 – $3,360 ($11,360 if bonus depreciation applies)
Year 2 – $5,300
Year 3 – $3,150
Year 4 and on – $1,875 per year