Luxury car tax 2018. 2018 luxury auto depreciation limits tables and explanations the tax law limits the amount you can deduct for depreciation of your car truck or van. The 2018 tax bill increased the luxury auto depreciation deduction limits for the 1st 2nd 3rd and subsequent years with the year first increased to 10000 and the second year to 16000. The section 179 deduction is also treated as depreciation for purposes of these limits. First year luxury auto depreciation allowance by 8000 from 10000 to 18000 for 2018.
Luxury car depreciation tax limits 2018 luxury car limit for depreciation purposes the luxury car tax limit for depreciation purposes under section 40 230 of the income tax assessment act 1997 for the fy 2017 18 is 57581. The tcja retained the 8000 limit for additional first year depreciation for passenger automobiles. So in 2018 the maximum amount a taxpayer can deduct for a passenger automobile in the first year is 18000. The electric vehicle income tax credit worth up to 7500 is primarily used by wealthy buyers of luxury cars.
Use your car for your small business. The annual depreciation limits for luxury cars kick in at surprisingly modest levels now the new law hikes the limits for. 2018 tax reform law has benefits for some small businesses. Luxury auto limits for business autos.
As such for 2018 the limits for light duty trucks vans and passenger cars are the same. However a used vehicle. Luxury car tax thresholds the following table lists the lct thresholds for the relevant financial year the financial year the car was imported acquired or sold. Luxury car tax rates and thresholds the lct changes depending on the year and fuel efficiency of the vehicle and is charged at 33 of the amount that is above the lct threshold.