The IRS today released an advance version of Rev. Proc. 2018-25—a revenue procedure that the IRS releases annually to provide:
Rev. Proc. 2018-25 [PDF 46 KB] reflects changes made to section 280F by the new tax law (Pub. L. No. 115-97, enacted December 22, 2017) that imposes dollar limitations on the depreciation deductions for passenger automobiles placed in service during 2018 and for each succeeding year.
The tables in listed in Rev. Proc. 2018-25 provide the depreciation limits for automobiles placed in service during 2018:
The depreciation limitations for passenger automobiles placed in service in 2018 were established by the new tax law, and the same limitations apply to passenger automobiles, trucks, and vans. These limitations are required to be adjusted annually for inflation beginning in 2019.
Because the inflation adjustments are calculated differently for passenger automobiles than for trucks and vans, the limitations for the two categories have historically differed in years that they have been inflation adjusted. It is expected the limitations will differ again beginning in 2019.
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