SECTION 4. APPLICATION
Internal Revenue Bulletin 1998-10 · 2026-10-03 edition · updated 2026-10-04 · United States
A taxpayer placing an electric automobile in service for the first time after August 5, 1997, and before January 1, 1998, is limited to the depreciation deduction shown in Table 1 of section 4.02(2) of this revenue procedure. A taxpayer first leasing an electric automobile after August 5, 1997, and before January 1, 1998, must use Table 2 in section 4.03 of this revenue procedure to determine the inclusion amount that is added to gross income.
Limitations on Depreciation De- ductions for Certain Automobiles.
(1) Amount of the Inflation Adjust- ment. Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. The term “CPI automobile component” is defined in § 280F(d)(7)(B)(ii) as the “automobile component” of the Consumer Price Index for all Urban Consumers published by the Department of Labor (the CPI). The new car component of the CPI was 115.2 for October 1987 and 141.5 for October 1996. The October 1996 index exceeded the October 1987 index by 26.3. The Internal Revenue Service has, therefore, determined that the automobile price inflation adjustment for 1997 is 22.83 percent (26.3/115.2 � 100%). This adjustment is applicable to all automobiles that are first placed in service in calendar year 1997. To determine the dollar limitations applicable to an electric automobile first placed
in service after August 5, 1997, and before January 1, 1998, the dollar limitations in § 280F(a)(1)(A) are tripled in accordance with § 280F(a)(1)(C) and are then multiplied by a factor of 0.2283; the resulting increases, after rounding to the nearest $100, are added to the tripled 1988 limitations to give the depreciation limitations for 1997.
(2) Amount of the Limitation. For electric automobiles placed in service after August 5, 1997, and before January 1, 1998, Table 1 contains the dollar amount of the depreciation limitations for each tax year.
REV. PROC. 98–24 TABLE 1
DEPRECIATION LIMITATIONS FOR ELECTRIC AUTOMOBILE FIRST PLACED IN SERVICE AFTER
AUGUST 5, 1997, AND BEFORE
JANUARY 1, 1998
Tax Year Amount 1st Tax Year $9,480 2nd Tax Year $15,100 3rd Tax Year $9,050 Each Succeeding Year $5,425
- Inclusions in Income of Lessees of Electric Automobiles.
The inclusion amounts for electric automobiles first leased after August 5, 1997, and before January 1, 1998, are calculated under the procedures described in § 1.280F–7(a) of the Income Tax regulations. Table 2 of this revenue procedure is the applicable table to be used in applying those procedures.
March 9, 1998 32 1998–10 I.R.B.
REV. PROC. 98–24 TABLE 2—Continued
DOLLAR AMOUNTS FOR ELECTRIC AUTOMOBILES
WITH A LEASE TERM BEGINNING AFTER AUGUST 5, 1997,
AND BEFORE JANUARY 1, 1998
| Fair Market Value of Automobile Over Not Over |
Tax Year During Lease | Tax Year During Lease | Tax Year During Lease | Tax Year During Lease | Tax Year During Lease |
|---|---|---|---|---|---|
| Fair Market Value of Automobile Over Not Over |
1st | 2nd | 3rd | 4th | 5th and Later |
| 55,000 56,000 56,000 57,000 57,000 58,000 58,000 59,000 59,000 60,000 60,000 62,000 62,000 64,000 64,000 66,000 66,000 68,000 68,000 70,000 70,000 72,000 72,000 74,000 74,000 76,000 76,000 78,000 78,000 80,000 80,000 85,000 85,000 90,000 90,000 95,000 95,000 100,000 100,000 110,000 110,000 120,000 120,000 130,000 130,000 140,000 140,000 150,000 150,000 160,000 160,000 170,000 170,000 180,000 180,000 190,000 190,000 200,000 200,000 210,000 210,000 220,000 220,000 230,000 230,000 240,000 240,000 250,000 |
66 74 83 91 99 111 128 144 160 177 193 209 226 242 259 287 328 369 410 471 553 635 717 798 880 962 1,044 1,126 1,208 1,289 1,371 1,453 1,535 1,617 |
147 165 183 201 219 246 282 318 354 389 425 461 497 533 568 632 721 811 900 1,035 1,214 1,393 1,573 1,752 1,932 2,111 2,290 2,469 2,649 2,828 3,008 3,187 3,366 3,545 |
220 247 273 300 326 366 419 472 525 579 632 686 738 792 845 938 1,071 1,204 1,337 1,537 1,803 2,069 2,334 2,601 2,866 3,133 3,399 3,665 3,930 4,197 4,462 4,729 4,995 5,261 |
264 296 328 359 392 440 503 567 631 695 759 822 887 950 1,014 1,125 1,285 1,444 1,604 1,843 2,162 2,481 2,801 3,119 3,439 3,757 4,076 4,395 4,715 5,033 5,353 5,671 5,990 6,309 |
306 342 379 417 453 508 582 656 730 803 876 950 1,023 1,097 1,171 1,300 1,484 1,669 1,853 2,128 2,497 2,866 3,233 3,602 3,970 4,338 4,707 5,075 5,443 5,812 6,179 6,548 6,916 7,285 |
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