Automobile Expensing
Depreciation of automobiles, minivans and sport utility vehicles (under 6,000 lbs.) is limited by the law. The maximum vehicle depreciation that may be taken by a business owner for these assets is $15,300. When Congress drafted this law, minivans and SUVs did not exist in their current form or did not have significant market share. Today small-business owners rely heavily on these types of vehicles. Congress should update the law to reflect the changes in the marketplace and raise the depreciable amount to $40,000.
