IRS Publication 946 — How To Depreciate Property

Maximum Depreciation Deduction for Passenger Automobiles (Including Trucks and Vans) Acquired Before September 28, 2017, and Placed in Service Before 2020 Date 4th & Placed 1st 2nd 3rd Later in Service Year Year Year Year 2019 $14,9001 $16,100 $9,700 $5,760 2018 16,4002 16,000 9,600 5,760 1 If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum depreciation deduction is $10,100. 2 If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum depreciation deduction is $10,000.

Maximum Depreciation Deduction for Passenger Automobiles Placed in Service Before 2018 Date 4th & Placed 1st 2nd 3rd Later in Service Year Year Year Years 2017 $11,1601 $5,100 $3,050 $1,875 2016 11,1601 5,100 3,050 1,875 2015 11,1602 5,100 3,050 1,875 2014 11,1603 5,100 3,050 1,875 2013 11,1603 5,100 3,050 1,875 2012 11,1603 5,100 3,050 1,875 2011 11,0604 4,900 2,950 1,775 2010 11,0604 4,900 2,950 1,775 2009 10,9605 4,800 2,850 1,775 2008 10,9605 4,800 2,850 1,775 2007 3,060 4,900 2,850 1,775 2006 2,960 4,800 2,850 1,775 1 If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum deduction is $3,160. 2 If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum deduction is $3,160. Also, if you placed the vehicle in service in a tax year beginning in 2015 and ending in 2016, and you elected to accelerate certain credits in lieu of the special depreciation for that tax year, the maximum deduction is $3,160. 3 If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum deduction is $3,160. 4 If you elected not to claim any special depreciation allowance or the vehicle is not qualified property, the maximum deduction is $3,060. 5 If you elected not to claim any special depreciation allowance for the vehicle or the vehicle is not qualified property, the maximum deduction is $2,960.

Caution: If your business/investment use of the automobile is less than 100%, you must reduce the maximum deduction amount by multiplying the maximum amount by the percentage of business/investment use determined on an annual basis during the tax year.

Caution: If you have a short tax year, you must reduce the maximum deduction amount by multiplying the maximum amount by a fraction. The numerator of the fraction is the number of months and partial months in the short tax year, and the denominator is 12.

Example. On April 15, 2025, you bought and placed in service a new car for $14,500. You used the car only in your business. You file your tax return based on the calendar year. You do not elect a section 179 deduction and elected not to claim any special depreciation allowance for the 5-year property. Under MACRS, a car is 5 -year property. Because you placed your car in service on April 15 and used it only for business, you use the percentages in Table A-1 to figure your MACRS depreciation on the car. You multiply the $14,500 unadjusted basis of your car by 0.20 to get your MACRS depreciation of $2,900 for 2025. This $2,900 is below the maximum depreciation deduction of $12,200 for passenger automobiles placed in service in 2025. You can deduct the full $2,900.

Electric Vehicles The maximum depreciation deductions for passenger automobiles that are produced to run primarily on electricity are higher than those for other automobiles. The maximum deduction amounts for electric vehicles placed in service after August 5, 1997, and before January 1, 2007, are shown in the following table. Owners of electric vehicles placed in service after December 31, 2006, should use the table of maximum deduction amounts in the previous section titled Passenger Automobiles for electric vehicles classified as passenger automobiles or use the table of maximum deduction amounts for trucks and vans, later, for electric vehicles classified as trucks and vans. Maximum Depreciation Deduction for Electric Vehicles Date 4th & Placed 1st 2nd 3rd Later in Service Year Year Year Years 2006 $8,980 $14,400 $8,650 $5,225 2005 8,880 14,200 8,450 5,125 2004 31,8301 14,300 8,550 5,125 5/06/2003– 12/31/2003 32,0302 14,600 8,750 5,225 1/01/2003– 5/05/2003 22,8803 14,600 8,750 5,225 1 If you elected not to claim any special depreciation allowance for the vehicle, or the vehicle is not qualified property, or the vehicle is qualified Liberty Zone property, the maximum deduction is $8,880. 60 Chapter 5 Additional Rules for Listed Property Publication 946 (2025)