Accounting and Tax Services
Mar 06

Heads up to physicians with luxury autos

2008 Auto Depreciation Limits: The Economic Stimulus Act of 2008 increased the Section 280F luxury auto depreciation limit by $8,000 for qualifying vehicles placed in service during calendar-year 2008. To reflect this increased limit, the IRS announced that the depreciation limit for passenger autos placed in service during 2008 will be $2,960 for the first tax year, or $10,960 taking 50% bonus depreciation into account, while the limit for trucks and vans placed in service during 2008 will be $3,160, or $11,160 taking 50% bonus depreciation into account. The IRS also published the income inclusion amounts for lessees of passenger autos during 2008, including a separate table of inclusion amounts for trucks and vans. [Note: The term trucks and vans includes passenger autos built on a truck chassis, including minivans and sport utility vehicles (SUVs) that are built on a truck chassis.]

About Reed Tinsley, CPA

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