Buyers of new, heavy SUVs may be eligible for special 50% bonus depreciation. If a company buys a new SUV with a loaded weight of over 6,000 pounds and places it into service in 2008, they can write-off up to 80% of the total costs, assuming 100% business use. To receive the maximum write-off, the business can elect to utilize a maximum Section 179 expense of $25,000 per vehicle. The new bonus depreciation allows for one-half of the remaining cost to be written-off while still allowing for regular depreciation, which permits for 20% of the remaining balance to be written-off.
The first-year ceiling for new cars is $10,960 up from $3,060 in 2007. For used cars, the first-year cap falls to $2,960. The limit for all cars in year two is down $100 to $4,800. The caps for additional years did not change; $2,850 for year three and $1,775 for all later years.
New Auto Depreciation