The projected luxury auto depreciation limits under Code Sec. 280F for passenger automobiles placed in service in 2016 are:
- $3,160 for the first year, the same as for 2015 ($11,160 for 2016, same as for 2015, only if Congress extends bonus depreciation into 2015 and 2016);
- $5,100 for the second tax year, the same as for 2015;
- $3,050 for the third tax year, the same as for 2015; and
- $1,875 for each tax year thereafter, the same as for 2015.
Trucks and vans
The projected maximum depreciation limits under Code Sec. 280F for trucks and vans first placed in service during the 2016 calendar year are:
- $3,560 for 2016, up from $3,460 for 2015 ($11,560 for 2016 if bonus depreciation is extended);
- $5,700 for the second tax year, up from $5,600 for 2015;
- $3,350 for the third tax year, the same as for 2015; and
- $2,075 for each tax year thereafter, up from $1,975 for 2015.
One permitted method that an employer can use to value the personal use of an employer-provided automobile is the standard mileage allowance rate, which for 2015 is 57.5 cents-per-mile for business-related travel (the 2016 mileage rate is expected to be announced sometime in mid-December 2015), but only if the vehicle’s FMV does not exceed certain amounts. The maximum FMVs for use of the vehicle cents-per-mile valuation rule in 2016, as projected, will be:
- $15,900 for a passenger automobile (down from $16,000 for 2015);
- $17,700 for a truck or van, which includes minivans and SUVs built on a truck chassis (up from $17,500 in 2015); and
- $21,200 for a fleet passenger automobile (down from $21,300 for 2015) and $23,100 for a fleet truck or van (up from $22,900 for 2015).