2013 Automobile Depreciation Limits Announced

On Monday, February 25th, the Internal Revenue Service announced the 2013 inflation-adjusted depreciation limits and lease income inclusion amounts for passenger automobiles. These limits are published in Revenue Procedure 2013-21.

For passenger automobiles placed in service in 2013 where the 50% bonus depreciation applies, the depreciation limit is $11,160. Trucks and vans first year is $11,360.

For passenger automobiles for which the bonus depreciation does not apply, the limit is $3,160. The limit for trucks and vans in this category is $3,360. Both of these amounts represent the first year depreciation limit.

Additional guidance on the limits can be found in the aforementioned Revenue Procedure or in the recent Journal of Accountancy article.