Section 179 limits for 2009
The section 179 limits for 2009 under which a taxpayer may elect to treat as an expense cannot exceed $133,000 in 2009. The limitation is reduced by the amount by which the the cost of section 179 property placed in service in 2009 exceeds $530,000.
New depreciaton rules for 2008
The Economic Stimulus Act of 2008 made the following changes to depreciaton:
The section 179 limit is increased to $250,000 for 2008 and the investment limitation is increased to $800,000.
For assets placed in service in 2008 are allowed 50% bonus depreciation. The first-year automobile limits are increased by $8,000.
Depreciation Rules for 2008
Depreciation rules for Autos and Trucks placed in service in 2008
| Year | Passenger Autos | Trucks |
| 1st Year | $2,960 | $3,160 |
| 2nd Year | $4,800 | $5,100 |
| 3rd Year | $2,850 | $3,050 |
| Each succeeding year | $1,775 | $1,875 |
Using the additional 50% bonus depreciation for example on an automobile acquired in 2008 would result in a maximum depreciation deduction of $10,960 ($2,960 plus $8,000 bonus depreciation). Allowable deductions must still be multiplied by the business use percentage.
Passenger vehicles are defined as four-wheeled vehicles with an unloaded gross vehicle weight of 6,000 pounds or less and manufactured primarily for use on public streets, roads, and highways.
Trucks are defined as trucks, vans and SUV's that are passenger automobiles built on a truck chassis, manufactured primarily for use on public streets, roads, and highways and that have an unloaded gross vehicle weight of less than 6,000 pounds that do not meet the description of a non-personal use vehicle (see SUV's below).
Section 179 Limits (see above for 2008 and 2009 limits)
The section 179 deduction is limited for SUV's to a maximum of $25,000. SUV's that are exempt non-personal vehicles are built on a truck chassis and have an unloaded gross vehicle weight of more than 6,000 pounds.
California still limits the overall section 179 deduction to $25,000.
All depreciation limits above are adjusted for the business use of the vehicle.