What is the first-year limit on depreciation, special depreciation allowance, and Section 179 deduction for most vehicles placed in service on or before December 31, 2017?

The first-year limit on depreciation, special depreciation allowance, and Section 179 deduction for most vehicles placed in service on or before December 31, 2017, was $11,160 and a special depreciation allowance of $3,160. These amounts reflect specific thresholds established by the IRS that are adjusted periodically.

For vehicles categorized as passenger automobiles, the first-year depreciation deduction is subject to limits to prevent excessive deductions for luxury vehicles. The combination of the standard first-year depreciation limit and the additional special depreciation allowance allows taxpayers to maximize their deductions for eligible vehicles. The amounts provided are designed to reflect considerations for smaller passenger vehicles as opposed to larger SUVs or trucks, which are treated differently under tax law.

In this context, the selected answer correctly provides these figures as established in tax regulations applicable to the relevant years. Other choices present different figures which do not align with the established limits for vehicles during that specific time period. Understanding these depreciation rules is critical for accurate tax preparation and planning for both individuals and businesses utilizing vehicles for work-related purposes.