Trucks and Vans

Trucks (including SUVs) and vans that are configured in such a way as to be used for personal purposes only minimally are not subject to the dollar limits on depreciation that apply to passenger cars weighing no more than 6,000 pounds. These trucks and vans are referred to as qualified nonpersonal use vehicles.

Modifications likely to render a truck or van a qualified nonpersonal use vehicle include having a front jump seat, permanent shelving that fills the cargo area, and advertising or a company name printed on the side.

Trucks and vans that are not qualified nonpersonal use vehicles are subject to the following rules:

• For vehicles with a gross vehicle weight rating in excess of 6,000 pounds but not more than 14,000 pounds, the dollar limits on depreciation do not apply (see the treatment of heavy SUVs earlier in this chapter). Their cost can be expensed up to $25,000 or depreciated as 5-year property without any dollar limit on the annual deduction.
• For lighter vehicles, special dollar limits apply. These dollar limits are slightly higher than for passenger cars. Table 9.10 shows the dollar limits for light trucks and vans first placed in service in 2012.