Auto depreciation limitations increase

February 10, 2024

The IRS issued higher new depreciation limitations for passenger automobiles, although the increases are smaller than in the previous two years.

The agency annually updates the limits for inflation, based on the automobile component of the chained consumer price index for urban consumers.

Rev. Proc. 2024-13 contains the inflation-adjusted dollar limitations on depreciation deductions for passenger automobiles — including trucks and vans — acquired after Sept. 27, 2017, and placed in service during 2024, for 2024 and each succeeding tax year.

For passenger automobiles, the limitation is $20,400 for the first tax year, an increase of $200 from the 2023 amount.

The succeeding-year limitations are $19,800 for the second tax year (an increase of $300 over 2023); $11,900 for the third year ($200 higher); and $7,160 for each year after that (an increase of $200). Read more.

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