The IRS has released the 2014 limits on depreciating autos, trucks and vans for 2014 (Rev. Proc. 2014-21). These assets are subject to special annual depreciation limits, often known as the “luxury auto” limits. The limits are lower than last year because of the expiration of the “bonus depreciation” rules. While bonus depreciation may be retroactively applied to 2014 later this year, these limits reflect what the law is for now, and what it will be if Congress does nothing.
The limits begin to apply for cars costing at least $15,800. A quick search of Cars.com finds that “luxury” can be had locally in a new 2014 Hyundai Accent SE, for $15,810:
It’s not your father’s luxury car, for sure.
The limits for trucks and vans:
Live it up, folks!