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In general, there are two primary methods for calculating vehicle depreciation for taxes For vehicles that cost less than these amounts, the depreciation limitations do not apply because the full amount of modified accelerated cost recovery system (macrs). Let’s take a closer look.

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You can't claim depreciation on property held for personal purposes These are indexed for inflation. If you use property, such as a car, for both business or investment and personal purposes, you can.

If the vehicle is not used more than 50 percent for business purposes, no section 179 or bonus depreciation deduction is allowed

You can depreciate a used vehicle, but there are some limitations The irs allows you to depreciate a used vehicle, but only if you acquired it for business use and have a legitimate business. For a passenger auto that costs more than the applicable amount for the year the vehicle is placed in service, you’re limited to specified annual depreciation ceilings