The IRS announced the dollar limits on depreciation for business vehicles bought and placed in service this year. The limits are slightly lower than for vehicles bought in 2024. For example, the first-year limit on depreciation for 2025, assuming bonus depreciation applies, is $20,200; it was $20,400 in 2024. Note: If a clean vehicle credit is claimed, the basis of the vehicle for figuring depreciation is reduced by the amount of the credit. The IRS also posted inclusion amounts (a reduction to lease payments) for vehicles first leased in 2025. They are not dramatically different from the amounts applicable to vehicles first leased in 2024. #IdeaoftheDay
Barbara Weltman
Big Ideas for Small Business, Inc.
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