Business Vehicle Depreciation Calculator

Placed in service 2026-2030  •  Section 179  •  Bonus Depreciation  •  Luxury Auto Caps  •  MACRS 5-Year
IRC §168(k) IRC §179 IRC §280F Rev. Proc. 2026-15 OBBBA (P.L. 119-21)
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Vehicle Information

Passenger automobile: 4-wheeled, rated 6,000 lbs unloaded GVW or less (trucks and vans: GVW). 280F(d)(5). Electric vehicles follow their weight rating.
Caps are fixed by the year the vehicle is placed in service and continue for later years. Rev. Proc. 2026-15, sec. 3.01.
Cost basis including sales tax and fees, before any credit basis reduction.
100%
Must be MORE than 50% for 179, bonus and MACRS; 50% or less is ADS straight line. 280F(b)(1), (d)(6).
Used only for projected years. Default 2.5%. Not an IRS figure.
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Depreciation Elections

Drives the bonus rate: 100% if acquired after January 19, 2025. Earlier acquisitions: 20% for 2026, none after 2026. Rev. Proc. 2026-15, sec. 2.02.
Mid-quarter applies only if more than 40% of the year's MACRS basis (excluding real property) was placed in service in Q4. 168(d)(3).
Passenger autos: 179 counts against the 280F cap. SUVs: limited to the 179(b)(5) cap. Overall 179 limits are assumed not to bind (see the Section 179 calculator).
The election out applies to the whole 5-year class placed in service that year. 168(k)(7).
For a passenger automobile with 100% bonus allowable, basis above the year-1 cap and no 179 election, years 2-6 are not left at zero. Rev. Proc. 2019-13, sec. 4.03.
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Depreciation Analysis

Year 1 Deduction
$0
After 280F cap & business use
§179 Elected
$0
Before any 280F cap
Bonus Computed
$0
100%
Unrecovered After Caps
$0
Business-use basis
Step-by-Step Calculation

Depreciation Schedule

Tax Year Computed Cap Allowed Cumulative
Assumptions & sources
Authority: IRC §168(k)(1), (k)(2)(F)(i), (k)(7) (bonus depreciation, 100% for property acquired and placed in service after January 19, 2025, P.L. 119-21 §70301); IRC §179(b)(5) and Rev. Proc. 2025-32 sec. 4.24 (SUV cap, $32,000 for 2026); IRC §280F(a), (b), (d)(5), (d)(7) and Rev. Proc. 2026-15 Tables 1 and 2 (2026 caps: $20,300 / $19,800 / $11,900 / $7,160 with bonus; $12,300 in year 1 without); IRC §280F(a)(1)(B) and Rev. Proc. 2019-13 (unrecovered basis after the recovery period and the safe harbor); Treas. Reg. §1.179-1(d), (f); Pub. 946 Tables A-1 to A-5 and A-8 to A-12; Form 4562, Parts II, III and V. Not modeled: leased vehicles, short tax years, employee use under 280F(d)(3), trade-ins, qualified nonpersonal use vehicles, and the 40% mid-quarter test across all property.

Last verified: October 29, 2026. Projected figures are estimates, not IRS-published amounts; the IRS publishes each year's 280F caps in a revenue procedure early in that year. Verify against the published tables before relying on any projected year.

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