Tax News

CCH (cch.taxgroup.com) reports:

  The IRS has issued the tables indicating the depreciation deductions for owners of passenger automobiles, trucks and vans first placed in service during calendar year 2009. Included are tables that reflect the 50-percent additional first-year depreciation deduction and increased first-year limits. Also provided are the lease inclusion tables indicating the amounts to be included in income for vehicles first leased during calendar year 2009.

  For passenger automobiles first placed in service during 2009 and to which the 50-percent additional first-year deduction does not apply, the deduction limitations for the first three tax years are: $2.960, $4,800, $2,850, respectively, and $1,875 for each succeeding year. For trucks and vans first place in service in 2009 and to which the 50-percent additional first-year depreciation deduction does not apply, the depreciation limitations for the first three years are $3,060, $4,900, $2,950, respectively, and $1,775 for each succeeding year.

  For passenger automobiles placed in service by the taxpayer in calendar year 2009, for which the 50 percent additional first-year deduction applies, the depreciation deduction limitation for only the first year increases to $10,960, The limitation amounts remain the same for all subsequent years. The first-year depreciation deduction limit increases to $11,160 for trucks and vans first place in service in 2009 and to which the 50-percent additional first-year depreciation deduction applies, Again, the limitation amounts remains the same for all subsequent years.

  For leased passenger automobiles and trucks and vans, a reduction in the deduction allowed to the lessee of the passenger automobile is required. This reduction requires a lessee to include in gross income an inclusion amount determined by applying a formula to the amount included in the tables. The inclusion amounts for leased passenger automobiles and vans and trucks vary with the fair market value of the vehicle.

Rev. Proc. 2009-24, 2009FED ¶46,329

Other References:

 
Code Sec. 162

  CCH Reference - 2009FED ¶1090.11

  CCH Reference - 2009FED ¶1201.35

  CCH Reference - 2009FED ¶8590.035

 
Code Sec. 168

  CCH Reference - 2009FED ¶11,279.058

  CCH Reference - 2009FED ¶11,279.19

 
Code Sec. 280F

  CCH Reference - 2009FED ¶15,108.023

  CCH Reference - 2009FED ¶15,108.025

  CCH Reference - 2009FED ¶15,108.048

  CCH Reference - 2009FED ¶15,108.049

  CCH Reference - 2009FED ¶15,108.40

  Tax Research Consultant

  CCH Reference - TRC DEPR: 3,504.05
CCH Reference - TRC DEPR: 3,504.10
CCH Reference -
TRC DEPR: 3,600