For vehicles placed in service in 2023, the maximum amount of depreciation you can claim without bonus depreciation depends on the type of vehicle and whether it is classified as a passenger vehicle or a heavy vehicle.
For passenger vehicles, the maximum depreciation limits for 2023 are as follows:
- First Year: $11,160 (for vehicles without any bonus depreciation claimed).
- Second Year: $18,000.
- Third Year: $10,800.
- Each Year Following: $6,460.
However, if the vehicle is classified as a heavy vehicle (with a gross vehicle weight rating (GVWR) over 6,000 pounds), there are generally higher depreciation limits, and these vehicles are not subjected to the same annual limits as passenger vehicles.
Please consult IRS guidelines or a tax professional, as there may be specific conditions and factors that can affect the overall depreciation deduction applicable to your situation.
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