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The IRS has released the Section 280F depreciation deduction limits for passenger automobiles – including trucks and vans – first placed into service in 2023. For the second year in a row, the IRS released significantly higher limits for taxpayers.
For passenger autos acquired after 9/27/17, placed in service during 2023, and subject to bonus depreciation under IRC Sec.168(k), the depreciation limits are:
- $20,200 for the first year
- $19,500 for the second year
- $11,700 for the third year, and
- $6,960 for each succeeding year
For passenger autos placed in service during 2023 that are not subject to Section 168(k) bonus depreciation, the depreciation limits are:
- $12,200 for the first year
- $19,500 for the second year
- $11,700 for the third year, and
- $6,960 for each succeeding year
Connect with a Pinion tax strategist for any questions about these depreciation changes.
