Business Vehicle Depreciation

The Tax Cuts and Jobs Act of 2017 increased the dollar limitations on depreciation and expensing for passenger automobiles. The limits for trucks, vans and passenger cars are the same. The amount of depreciation and expensing deduction should not exceed:

  • $10,100 for the 1st taxable year
  • $16,100 for the 2nd taxable year
  • $9,700 for the 3rd taxable year
  • $5,760 for each succeeding taxable year

The Tax Cuts and Jobs Act retained the $8,000 bonus depreciation limit for additional first-year depreciation for passenger automobiles, so in 2019 the maximum amount a taxpayer can deduct for a passenger automobile in the first year is $18,100.