Auto Depreciation Limitations Make A Big Leap For Second Year In A Row


For the second year in a row, the IRS has issued sharply higher new depreciation limitations for passenger automobiles. These limits are updated annually for inflation according to the automobile component of the chained consumer price index for urban consumers.

Rev. Proc. 2023-14, released Wednesday, contains the Sec. 280F(a) inflation-adjusted dollar limitations on depreciation deductions for passenger automobiles — including trucks and vans — acquired after Sept. 27, 2017, and placed in service during 2023, for 2023 and each succeeding tax year.

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