Deductions and Write-Offs

In 2016, for passenger automobiles, the limits are $5,100 for the second tax year; $3,050 for the third tax year; and $1,875 for each successive tax year,
If placed in service between 2006 and 2011 then the allowed amount is $1,775. If placed in service between 2004 and 2005 then the allowed amount is $1,675.

The current tax law sets a specific annual dollar limitation (adjusted each year for inflation) on the amount of depreciation allowed for any "passenger automobile". generally referred to as the "luxury automobile" limitations.
The limitations apply to four-wheeled vehicles that are manufactured primarily for use on public streets, roads, and highways, and that are rated at 6,000 pounds gross vehicle weight (GVW) or less (except for trucks and vans, a vehicle's "unloaded" GVW rating is used).

For passenger automobiles (other than trucks or vans) placed in service during calendar year 2016, the depreciation limit under Sec. 280F(d)(7) is $3,160 plus $8,000 first year special allowance = $11,160.
For passenger automobiles (other than trucks or vans) placed in service during calendar year 2016, the depreciation limit under Sec. 280F(d)(7) is $3,560 plus $8,000 first year special allowance = $11,560 for the first tax year,

Beginning on January 1, 2014, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 56 cents per mile for business miles driven, 23.5 cents per mile driven for medical or moving purposes, 14 cents per mile driven in service of charitable organizations.
The business, medical, and moving expense rates decrease one-half cent from the 2013 rates. The charitable rate is based on statute.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. .

Beginning on January 1, 2014, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 56 cents per mile for business miles driven 23.5 cents per mile driven for medical or moving purposes 14 cents per mile driven in service of charitable organizations

The annual exclusion for gifts remains at $14,000 for 2014.

Bonus depreciation on purchases of race horses was reinstated in 2013 at 50%, which was the 2012 rate. The expense allowance was increased to $500,000 for this year and retroactively increased from $125,000 to $500,000 for horses purchased in 2012.
Accelerated depreciation for young racehorses continues through 2013.
Taxpayers can depreciate racehorses that are 24 months and younger when purchased and placed in service using a three-year schedule rather than the previous seven-year schedule.

ATRA, extends this treatment to amounts paid or accrued before January 1, 2014 (and not properly allocable to any period after 2013).,Br> Taxpayers can treat amounts paid during the year for qualified mortgage insurance as qualified residence interest.
To qualify for this treatment, the insurance must be in connection with acquisition debt for a qualified residence, and the insurance contract must have been issued after 2006.

Beginning on January 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
56.5 cents per mile for business miles driven
24 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations