Use the following guidelines to determine the appropriate property type.
Luxury auto (passenger) and Van or light truck
Luxury auto (passenger)
Use this property type for "passenger automobiles." Passenger automobiles are four-wheeled vehicles primarily used on public roads and are rated at 6,000 pounds unloaded gross vehicle weight or less. (For a truck or van, the gross vehicle weight is substituted for unloaded gross vehicle weight.) The limits for passenger automobiles are applied to assets coded for this property type.
Van or light truck
Use this property type for trucks and vans placed in service after 2002 that are not qualified for non-personal use vehicles or are passenger automobiles built on truck chassis, including minivans and sport utility vehicles built on truck chassis.
Exceptions for Luxury auto (passenger) and Van or light truck property types
The following vehicles are not considered passenger automobiles.
- Ambulances, hearses, or combination ambulance/hearses that are used in your trade or business
- Vehicles used in your trade or business of transporting persons or property for compensation or hire
- Any truck or van placed in service after July 6, 2003, that is a qualified non-personal use vehicle.
Note: Use the Electric vehicle type for assets that are "electric passenger automobiles." These vehicles are primarily produced by an original equipment manufacturer and designed to run primarily on electricity. The limits for electric passenger automobiles are applied to assets coded for this property type.
Sport utility vehicle
Use this property type for sport utility vehicles and certain other vehicles. These vehicles cannot elect to expense more than $25,000 of the cost of the vehicle if placed in service after October 22, 2004. This applies to any four-wheeled vehicle primarily designed to carry passengers over public streets, roads, or highways that is not subject to passenger automobile limits and is rated at no more than 14,000 pounds gross vehicle weight.
Exceptions for Sport utility vehicles
The section 179 limit does not apply to any of the following vehicles.
- Vehicles that are designed to have a seating capacity of more than nine persons behind the driver's seat.
- Vehicles that are equipped with a cargo area of at least six feet in interior length that is an open area, or designed for use as an open area but is enclosed by a cap and is not readily accessible directly from the passenger compartment.
- Vehicles that have an integral enclosure that fully encloses the driver compartment and load carrying device, does not have seating rearward of the driver's seat, and has no body section protruding more than 30 inches ahead of the leading edge of the windshield.
Listed property (vehicle)
In general, use this property type for any vehicle property that is both:
- not considered a passenger automobile or an electric vehicle, and
- is used for transportation, if the property lends itself to personal use (such as motorcycles, pick-up trucks, and so on).
The luxury auto limits to the depreciation allowed for the current year are not applied to assets that are coded "Listed property (vehicle)" on the Vehicle/Listed tab.
Note: For more information, see the IRS Form 4562 Instructions.