IRS releases 2009 vehicle deductions
Each year the IRS publishes depreciation limits for business vehicles first placed in service that year. Because 50% bonus depreciation is allowed only for new vehicles, these limits are different for new and used vehicles.
For new business cars purchased in 2009, the first-year limit is $10,960; for used cars, it’s $2,960. After year one, the depreciation limits are the same for both new and used vehicles purchased in 2009: $4,800 in year two, $2,850 in year three, and $1,775 in all following years.
The 2009 first-year depreciation limit for trucks and vans is $11,060 for new vehicles and $3,060 for used vehicles. Limits for both new and used vehicles in year two are $4,900, in year three $2,950, and in each succeeding year $1,775. For details relating to your 2009 business vehicle purchases, contact us.
Don’t forget to put a little tax planning on your busy summer agenda. A midyear tax review is a great way to save