New York City—Corporate Income, Miscellaneous Taxes: Guidance Provided on SUV Depreciation and Expensing Limitations

21 March 2019

New York City has explained business corporation, general corporation, banking corporation, and unincorporated business tax provisions limiting the depreciation and first-year expense deductions allowed for sport utility vehicles.

Federal Limitations

At the federal level, passenger vehicle deduction limitations under IRC Sec. 280F do not apply to many SUVs because of their weight.

New York City Limitations

Under the New York City provisions, the IRC Sec. 280F limitations apply to all SUVs, regardless of weight. Accordingly, the applicable New York City deduction is based on the IRC Sec. 280F limitations that would apply if the SUV were a passenger automobile. The New York City limitations apply to depreciation deductions and IRC Sec. 179 deductions taken in tax years beginning on and after January 1, 2004, regardless of when the SUV was placed in service.

The guidance includes schedules setting forth the New York City limits for tax years beginning in 2004 through 2018.

Finance Memorandum 18-1, New York City Department of Finance, March 18, 2019