A - Expense up to $11,160 ($11,560 for Vans, Light Trucks) due to the limitation on passenger automobiles, trucks, SUVs and vans provided by Internal Revenue Code Section 280F(d)(4)(A) and Revenue Procedure 2016-23. This deduction assumes 100% business use of the vehicle by a taxpayer in a trade or business.
B - Trucks and vans with a gross vehicle weight rating (GVWR) greater than 6,000 pounds are not subject to the annual depreciation caps under the luxury car rules (Internal Revenue Code Section 280F(d)(5)(B)(iii)). Vehicles over 6,000 pounds with a cargo area larger than 6' may be fully expensed under section 179 up to $500,000 when less than $2,010,000 of eligible section 179 property is placed in service. This deduction assumes 100% business use of the vehicle by a taxpayer in a trade or business.
C - Sport Utility Vehicles (SUVs), passenger vans that do not seat more than 9 persons behind the passenger seat, and trucks with an interior cargo bed length less than 6 feet that have a GVWR of 6,000 pounds or more are not subject to the luxury car depreciation caps. However, they are limited to a $25,000 Section 179 expense allowance when less than $2,010,000 of eligible section 179 property is placed in service (Revenue Procedure 2003-75). The remaining basis of the vehicle is depreciated using MACRS 200% Double Declining Balance over a five year period. This estimated deduction assumes 100% business use of the vehicle by a taxpayer in a trade or business.
D - The 2016 FIAT® 500e electric vehicle may be eligible for the full $7,500 federal Section 30D tax credit, and state incentives including the $2,500 California Clean Vehicle Rebate Project (CVRP).
E - Customers should always independently verify the GVWR and bed length of a vehicle before making any purchase, claiming exemption from the depreciation limitations, or electing the section 179 deduction.
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