The IRS has issued updated deprecation limits. For luxury passenger cars, SUVs, trucks, and vans placed in service in 2021; the depreciation caps are as follows:
- $10,200 for the first year without bonus depreciation
- $18,200 for the first year with bonus depreciation
- $16,400 for the second year
- $9,800 for the third year
- $5,860 for the fourth through sixth year
Certain vehicles are exempt from the depreciation caps:
- Cars with an unloaded gross vehicle weight greater than 6,000 pounds
- SUVS, trucks and vans with a gross vehicle weight rating of greater than 6,000 pounds