Auto - Limitation

The , often called the "luxury auto" rule by the IRS, refers to the maximum annual depreciation deduction you can claim for business-use vehicles. These limits prevent taxpayers from taking massive first-year write-offs on high-end passenger vehicles.

These figures apply to passenger automobiles (including light trucks and vans) weighing . If Bonus Depreciation is Claimed If Bonus Depreciation is NOT Claimed 1st Year $20,300 $12,300 2nd Year $19,800 $19,800 3rd Year $11,900 $11,900 Subsequent $7,160 $7,160 Key Rules & Strategies auto limitation

Topic no. 510, Business use of car | Internal Revenue Service The , often called the "luxury auto" rule

For the , the IRS has updated these caps via Rev. Proc. 2026-15 . 2026 Depreciation Limits 300 2nd Year $19