Federal Tax, Tax

Passenger Vehicles

If your business buys or leases passenger vehicles in 2022, review the IRS’s recently updated depreciation deduction and income inclusion tables. In general, taxpayers may claim an additional first-year depreciation deduction equal to 100% if they place qualified purchased vehicles into service before 2023 (other rules and limitations apply). Table 1 lists depreciation limits for vehicles that qualify for an additional deduction. Table 2 is for vehicles that don’t qualify for the additional deduction. And Table 3 provides dollar amounts to be used to determine an income inclusion amount for leased vehicles. See Rev. Proc. 2022-17 for the tables. For questions, contact the Cg Team. © 2022