Listed Property Limits for 2016

IRC §280F (listed property) provides ceilings on the amount of depreciation and §179 that can be claimed on passenger automobiles, light duty trucks and vans.  This email gives you these limits for vehicles placed in service beginning in 2015.

These limits are multiplied by the taxpayer’s business use percentage of the vehicle.

** Limits for passenger automobiles
The §280F limits for passenger automobiles first placed in service during the calendar year 2016 that are neither trucks nor vans:
-Year 1 - 3,160 (plus extra $8,000 if bonus depreciation is used)
-Year 2 - 5,100
-Year 3 - 3,050
-Year 4 & after - 1,875

** Limits for trucks and vans
The §280F limits for trucks and vans first placed in service during the calendar year 2016 are:
-Year 1 - 3,560 (plus extra $8,000 if bonus depreciation is used)
-Year 2 – 5,700
-Year 3 – 3,350
-Year 4 & after - 2,075

The lease inclusion for 2016 applies to a passenger automobile when the FMV of the vehicle exceeds $19,000 and apply to a light duty truck and van when the FMV of the vehicle exceeds $19,500.

CHANGE TO LEASE INCLUSION TABLE FOR 2015 – The first three lines of the table for automobiles and the first two lines of the table for trucks & vans are removed.  Therefore the lease inclusion for 2015 applies to a passenger automobile when the FMV of the vehicle exceeds $19,000 and apply to a light duty truck and van when the FMV of the vehicle exceeds $19,500 (same as 2016).  (We suspect most taxpayers will not want their 2015 return amended for such a minor change.)

This information including the lease tables for 2016 can be found in Revenue Procedure 2016-23 which can be found at www.irs.gov/pub/ by clicking on irs-drop and then on rp-16-23.

This text has been shared with you courtesy of:  David & Mary Mellem, EAs & Ashwaubenon Tax Professionals, 920-496-1065.