Home » DEDUCTIONS » AUTO » 2011 Auto Depreciation Deduction Limitations – (and a classic video from The Cars)

2011 Auto Depreciation Deduction Limitations – (and a classic video from The Cars)

By Stacie Clifford Kitts, CPA

Well, I’m a bit late in the posting of this Revenue Procedure released March 1 by the Internal Revenue Service.  But in my defense, we are a tiny bit busy this time of year.

Revenue Procedure 2011-21 provides the depreciation deduction limitations for owners of passenger automobiles (including trucks and vans) first placed in service during calendar year 2011 and the amount to be included in income by lessees of passenger automobiles first leased during calendar year 2011.  These depreciation deduction limitations and income inclusion amounts are updated annually pursuant to section 280F to reflect the automobile price inflation adjustments.  Rev. Proc. 2011-21 also modifies Rev. Proc. 2010-18, to increase the depreciation limitations and lessee inclusion amounts for passenger automobiles first placed in service or leased in 2010 by taxpayers claiming the section 168(k) additional first year depreciation deduction pursuant to the Small Business Jobs Act of 2010.

Revenue Procedure 2011-21 will appear in IRB 2011-12 dated March 21, 2010.

Here is a recap of the depreciation schedules included in the Revenue Procedure.

Depreciation table for passenger automobiles (that are not trucks or vans) placed in service in calendar year 2011 for which the Sec 168(k) additional first year depreciation deduction applies:

1st tax year                           $11,060

2nd tax year                         $4,900

3rd tax year                         $2,950

Each succeeding year      $1,775

Depreciation table for trucks and vans placed in service in calendar year 2011 for which the Sec 168(k) additional first year depreciation applies:

1s tax year                           $11,260

2nd tax year                       $5,200

3rd tax year                        $3,150

Each succeeding year     $1,875

Depreciation table for passenger automobiles (that are not trucks or vans) placed in service in calendar year 2011 for which the Sec 168(k) additional first year depreciation deduction does not apply:

1s tax year                           $3,060

2nd tax year                       $4,900

3rd tax year                        $2,950

Each succeeding year     $1,775

Depreciation table for trucks and vans placed in service in calendar year 2011 for which the Sec 168(k) additional first year depreciation does not apply:

1s tax year                           $3,260

2nd tax year                       $5,200

3rd tax year                        $3,150

Each succeeding year     $1,875

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