IRS Releases 2019 Depreciation Limits for Certain Passenger Automobiles, June 13, 2019

Revenue Procedure 20196 provides the depreciation limits for passenger automobiles first placed into service in 2019, and also provides the amounts that must be included in income for taxpayers who lease certain automobiles beginning in 2019. For passenger automobiles purchased before September 28, 2017 and first placed in service in 2019, and to which the extra Section 168 depreciation deduction does apply, the first year limitation is $14,900, increasing to $16,100 in year two and falling to $9,700 in year three. For all subsequent years, the limit is $5,760.For passenger automobiles purchasedafterSeptember 28,2017and first placed in service in 2019 and to which the extra Section 168 depreciation deduction does apply, the first year limitation is $18,100, decreasing to $16,100 in year two and falling to $9,700 in year three. For all subsequent years, the limit is $5,760. If no bonus depreciation applies, the limits are $10,100, $16,100, $9,700 and $5,760. The amount that must be included in income for individuals who leased an automobile in 2019 is increased to $50,000. For more information on the depreciation rules and limits that apply to passenger automobiles, visit Tax Facts on Insurance and Employee Benefits Online.