If you purchase a vehicle this year for business use, you can depreciate the cost up to set dollar limits. The IRS announced the limits for passenger cars and for light trucks and vans. The limits for passenger cars are unchanged from the limits that applied to 2012 purchases; some of the limits for light trucks and vans are slightly higher.
The limit on depreciation for 2013 for a passenger car is $11,160 if the vehicle is new or $3,160 if the vehicle is preowned. The limit for light trucks and vans is $11,360 if new or $3,360 if preowned.
The IRS also released “inclusion amounts” for vehicles first leased in 2013. These amounts are added back to income and are intended to help equate the write-off received for leasing versus buying a vehicle. The inclusion amounts apply to leased vehicles valued over $19,000 (the threshold for 2012 leases was $18,500). Overall, the inclusion amounts are slightly lower for vehicles leased this year as compared with vehicles leased last year.
Source: Rev. Proc. 2013-21