Luxury car tax 2018. Luxury auto limits for business autos. 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. As such for 2018 the limits for light duty trucks vans and passenger cars are the same. 2018 tax reform law has benefits for some small businesses.
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. 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. However a used vehicle. In 2018 228408 of the 361307 electrified vehicles sold in american had a price tag.
Use your car for your small business. The tcja retained the 8000 limit for additional first year depreciation for passenger automobiles. If you buy a car with a gst inclusive value above these lct thresholds you must pay lct. The new tax law is good news for you.
First year luxury auto depreciation allowance by 8000 from 10000 to 18000 for 2018. The luxury car tax delivers another huge bonus to the governments coffers despite questions over its longer term future rising new car prices are expected to hand huge tax bonuses to the government for the foreseeable future the 2018 19 federal budget papers released last night reveal. The section 179 deduction is also treated as depreciation for purposes of these limits. 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.