Join the waitlist

Luxury Auto Depreciation Limit Calculator (Section 280F, 2026)

What do the numbers come to once the work is shown?

The 2026 Rev. Proc. 2026-15 depreciation cap for a passenger car by recovery year and business use, and the deduction allowed.

  • Runs in your browser
  • Nothing stored or sent
  • Free, no sign-up
Your figures
Example figuresIllustrative only. Type over them with your own.
Depreciation allowed this year
$16,240
Passenger automobiles placed in service in 2026
Cap for this year at your business use
$16,240
Full-business-use cap from Rev. Proc. 2026-15
$20,300
Table 1, bonus applies
Drawn to one scale
Depreciation allowed this year$16,240
Cap for this year at your business use$16,240
Full-business-use cap from Rev. Proc. 2026-15$20,300
Depreciation deferred past the recovery period$28,760
All results
MeasureResult
Depreciation allowed this year$16,240
Cap for this year at your business use$16,240
Full-business-use cap from Rev. Proc. 2026-15
Table 1, bonus applies
$20,300
Depreciation deferred past the recovery period$28,760
Business use testMore than 50%: MACRS and bonus available
How this was worked out
Work shownrecomputed as you type
Table 1 (bonus applies): $20,300, $19,800, $11,900, then $7,160 a year
Table 2 (no bonus): $12,300, $19,800, $11,900, then $7,160 a year
Cap = table amount x business use percentage
Allowed = lesser of computed depreciation or cap

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Table 1 (bonus applies): $20,300, $19,800, $11,900, then $7,160 a year
  • Table 2 (no bonus): $12,300, $19,800, $11,900, then $7,160 a year
  • Cap = table amount x business use percentage
  • Allowed = lesser of computed depreciation or cap

How it works

Rev. Proc. 2026-15 gives the Section 280F limits for passenger automobiles placed in service in calendar year 2026. Table 1 applies when the Section 168(k) additional first-year deduction applies, whether under former 168(k) or as amended by the One Big Beautiful Bill Act. Table 2 applies when it does not, for example when business use is 50% or less or the taxpayer elects out.

The caps scale down with the business use percentage. Amounts above the cap are not lost: they are deducted at the succeeding-year limit after the regular recovery period ends. Trucks and vans with a gross vehicle weight above 6,000 pounds are not passenger automobiles for 280F; heavy SUVs face the separate $32,000 Section 179 cap for 2026.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Why is year 1 only $12,300 without bonus?

The $8,000 bonus add-on in Table 1 applies only when the 168(k) deduction is taken.

Do these limits apply to electric cars?

Yes. Rev. Proc. 2026-15 uses one table for all passenger automobiles placed in service in 2026.

What about leased cars?

Lessees add an inclusion amount to income from Table 3 of the same revenue procedure instead of applying these caps.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

Related audit calculators

CalculatorTrust and Estate Income Tax Calculator (2026 Form 1041 Rates)Tax on a trust or estate's 2026 taxable income with qualified dividends and long-term gains at 0%, 15% and 20%.CalculatorNet Investment Income Tax for Trusts and Estates (2026 $16,000)The 3.8% tax on the lesser of undistributed net investment income or AGI above $16,000 for 2026.CalculatorRoth IRA Distribution Ordering Calculator: Contributions, Conversions, EarningsWhich layers a nonqualified Roth IRA distribution comes from, the taxable amount and the 10% additional tax.
For US CPA firms

Join the CORAA waitlist

CORAA AI drafts audit working papers from your client’s QuickBooks books and does the first pass: lead schedules, tie-out, memos, draft notes and letters. CORAA Network reviewers clear every finding. Your firm reviews and signs.

  • First audit free, so you can judge the quality on a real file
  • Flat fee by entity size; messy books included
  • We work only with CPA firms, never their clients
See how it works →

* required