For the first time in at least three years, the IRS issued lower depreciation limitations for passenger automobiles.
Rev. Proc. 2025-16, released Wednesday, contains the Sec. 280F(a) inflation-adjusted dollar limitations on depreciation deductions for passenger automobiles — which include trucks and vans — acquired after Sept. 27, 2017, and placed in service during 2025, for 2025 and each succeeding tax year.
For passenger vehicles for which Sec. 168(k) additional first-year, or "bonus," depreciation is applied, the limitation is $20,200 for the first tax year, a decrease of $200 from the 2024 amount.
The increase from 2021 to 2022 and 2022 to 2023 was $1,000 each year. For 2023 to 2024, the increase was $200. See more auto depreciation limits.