Oct 18

Written by: Stephen Stafford, J.D., LL.M.
10/18/2010 3:13 PM  RssIcon

Under Internal Revenue Code Section 280F, first-year depreciation deductions for passenger autos, light trucks and vans are subject to dollar limits that are annually adjusted for inflation. For 2010, the dollar limit cap for passenger autos is $3,060, and $3,160 for light trucks and vans. The Small Business Jobs Act of 2010, however, increases the first-year depreciation limit by $8,000. Therefore, the maximum depreciation deduction for a passenger auto that is put into use in 2010 just increased from $3,060 to $11,060 (i.e., this deduction is more than tripled in 2010). If the vehicle is a light truck or van, the maximum first-year depreciation just increased from $3,160 to $11,160.

To see the entire blog and read about some of the Act’s additional tax breaks for entrepreneurs and small businesses, click on the link below.

Tax Breaks for Entrepreneurs and Small Businesses in Small Business Jobs Act of 2010.pdf