Tax Update Blog

IRS Updates Auto Depreciation Limits for 2020

July 9, 2020 | Blog

  The tax law has special depreciation limits for motor vehicles - often incongrously called the "luxury auto" rules. The IRS has released (Rev. Proc. 2020-37) the updated limits, which apply to vehicles far below the Rolls-Royce level. There are different tables when bonus depreciation (Sec. 163(k)) applies and when it does not. The tables:

 

Rev. Proc. 2020-37 tables

Related: What Dealerships Need to Know About Tax Reform

 


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