The IRS has issued slightly higher depreciation deduction limits for passenger automobiles placed in service in calendar year 2021. Taxpayers with qualified property (including automobiles) may generally claim an additional first-year depreciation deduction equal to 100% for qualified property acquired after Sept. 27, 2017, and before Jan. 1, 2023. The 2021 depreciation limits are: $18,200 for the first tax year; $16,400 for the second tax year; $9,800 for the third tax year; and $5,860 for each succeeding year. Among other criteria, the deduction isn’t allowed if, in 2021, you didn’t use the automobile more than 50% for business or opted out of taking the deduction. (Rev. Proc. 2021-31) Call or visit our website for more information! www.mjscpa.com/
