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Former Member
Oct 11, 2012 at 06:06 AM

2012 Vehicle Depreciation Dollar Limits for USA

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Hi Gurus,

In the USA, the IRS has issued the following rules for Passenger automobiles.

Passenger automobiles

The maximum depreciation limits under Code Sec. 280F for passenger automobiles first placed in service by the taxpayer during the 2012 calendar year are:

  • $11,160 for the first tax year ($3,160 if bonus depreciation is not taken);
  • $5,100 for the second tax year;
  • $3,050 for the third tax year; and
  • $1,875 for each tax year thereafter.

The bonus depreciation will apply only in the first year and will not exceed $ 8000 and ordinary depreciation will not exceed $ 3160

However, if the acquired value of the asset is less than $15000, then the depreciation for tax purposes should be as follows:

Bonus Depreciation = 50% of acquisition value

Ordinary Depreciation = (Acquisition value - Bonus Depreciation) * 20%

The limits of maximum amount of depreciation also apply in this case.

We are not sure how to configure this in SAP using standard customizing and/or the user exits EXIT_SAPLAFAR_001 and EXIT_SAPLAFAR_002.

If anyone has worked on it, please can you give us a detailed explanation of how this should be done.

Regards,

A