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IRS PUBLISHES 2007 AUTO DEPRECIATION TABLES

April 13, 2007

The tax law long ago cracked down on tax breaks for "luxury" cars. Since then many people have been surprised to find they've been driving in the lap of luxury.

The IRS today issued the new maximimum depreciation deductions for cars placed in service in 2007. The tables limit depreciation for cars with prices starting at $15,300. The tables:

MAXIMUM ANNUAL DEPRECIATION, PASSENGER AUTOMOBILES

Year 1...............$3,060
Year 2................4,900
Year 3................2,850
Year 4 and after......1,775

MAXIMUM ANNUAL DEPRECIATION, TRUCKS AND VANS

Year 1...............$3,260
Year 2................5,200
Year 3................3,050
Year 4 and after......1,875

The IRS also issued the "inclusion amounts" for leased automobiles. The depreciation and lease tables are all in Rev. Proc. 2007-30.

Borderline luxury: 2006 Chevrolet Malibu LT: priced to sell at $15,295.

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