For the tax year 2023, the maximum allowable depreciation deduction for passenger vehicles that are used for business purposes, without claiming any bonus depreciation, is subject to specific limits set by the IRS. For standard passenger vehicles, the limits are:
- Year 1: $12,200
- Year 2: $19,500
- Year 3: $11,700
- Each succeeding year: $6,460
The limits could vary depending on the vehicle's weight and whether it qualifies as a luxury vehicle, but for the standard passenger vehicle category, these are the maximum amounts you can claim for depreciation in the first few years. Always consult a tax professional or the IRS guidelines for the most accurate and applicable information.
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