In Revenue Procedure 2016-23 [4/1/16], the IRS specifies the inflation-indexed depreciation deduction limitations for owners of passenger vehicles and the income inclusion amounts for lessees of passenger vehicles first purchased or leased in calendar year 2016. There are separate limitations for trucks and vans. “Trucks and vans” refers to passenger vehicles built on a truck chassis, including minivans and sport utility vehicles that are built on a truck chassis. The amounts for passenger automobiles placed in service in 2016 are: 2016 – $3,160; 2017 – $5,100; 2018 – $3,050; and, each succeeding year – $1,875. All four amounts are the same limits as 2015. For trucks and vans placed in service in 2016, the amounts are: 2016 –$3,560; 2017 – $5,700; 2018 – $3,350; and, each succeeding year – $2,075. Except for the 2018 truck and van limit, each of the other three limits increased $100 from the 2015 limits. The PATH Act extended bonus depreciation through 2019 but only extended the $8,000 increase in the first year vehicle limit for 2015-2017. For 2018, the increase is $6,400 and for 2019 it is $4,800. If taxpayers claim bonus depreciation in 2016, the first-year depreciation limitations are $11,160 for passenger automobiles and $11,560 for trucks and vans. Click here for a complete copy of Revenue Procedure 2016-23.