The luxury auto caps on depreciation just got increased A LOT with the new 2018 tax plan.
The old limits were:
First year $ 3,160
Second year $ 5,100
Third year $ 3,050
Fourth & following $ 1,875
New limits, beginning in 2018, will be:
First year $10,000
Second year $16,000
Third year $ 9,600
Fourth & following $ 5,760
Remember that the depreciation limits apply based on the percentage of business use you have for your vehicle. If the maximum is $10,000 and you have 90% business usage, then your depreciation maximum would be $9,000 (90% times $10,000).
As we near the end of 2017, think carefully about your year-end tax planning. In 2018, a lot of things change and that means planning for 2017 also means planning for 2018.
