IRS Rev. Proc.: Certain 2025 Depreciation Limitations for Passenger Automobiles, Income Inclusion Amounts for Lessees (IRC §280F)

The IRS released guidance providing: 1) two tables of limitations on depreciation deductions for owners of passenger automobiles placed in service by the taxpayer during calendar year 2025; and 2) a table of dollar amounts that must be used to determine income inclusions by lessees of passenger automobiles with a lease term beginning in calendar year 2025. The tables reflect the automobile price inflation adjustments required by I.R.C. § 280F(d)(7). The term “passenger automobiles” includes trucks and vans. The revenue procedure applies to passenger automobiles placed in service during calendar year 2025 or with a lease term beginning in calendar ...