SECTION 4. APPLICATION

1. A taxpayer placing an automobile in service for the first time during calendar year 2001 is limited to the depreciation deduction shown in Table 1 of section 4.02(2) of this revenue procedure or, in the case of an electric automobile, Table 2 of this revenue procedure. A taxpayer first leasing an automobile in calendar year 2001 must determine the inclusion amount that is added to gross income using Table 3 of section 4.03 of this revenue procedure or, in the case of an electric automobile, Table 4 of this revenue procedure. In addition, the procedures of § 1.280F–7(a) must be followed. An employer providing an automobile for the first time in calendar year 2001 for the personal use of any employee may determine the value of the use of the automobile by using the cents-per-mile valuation rule in § 1.61–21(e) if the fair market value of the automobile does not exceed the amount specified in section 4.04(2) of this revenue procedure. If the fair market value of the automobile exceeds the amount specified in section 4.04(2) of this revenue procedure, the employer may determine the

value of the use of the automobile under the general valuation rules of § 1.61–21(b) or under the special valuation rules of § 1.61–21(d) (Automobile lease valuation) or § 1.61–21(f) (Commuting valuation) if the applicable requirements are met.

2. Limitations on Depreciation Deductions 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 138.6 for October 2000. The October 2000 index exceeded the October 1987 index by 23.4. The Internal Revenue Service has, therefore, determined that the automobile price inflation adjustment for 2001 is 20.31 percent (23.4/115.2 x 100%). This adjustment is applicable to all automobiles that are first placed in service in calendar year 2001. The dollar limitations in § 280F(a) must therefore be multiplied by a factor of 0.2031, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than electric automobiles) for calendar year 2001. To determine the dollar limitations applicable to an electric automobile first placed in service during calendar year 2001, the dollar limitations in § 280F(a) are tripled in accordance with § 280F(a)(1)(C) and are then multiplied by a factor of 0.2031; the resulting increases, after rounding to the nearest $100, are added to the tripled 1988 limitations to give the depreciation limitations for calendar year 2001.

(2) Amount of the Limitation . For automobiles (other than electric automobiles) placed in service in calendar year 2001, Table 1 of this revenue procedure contains the dollar amount of the depreciation limitations for each tax year. For electric automobiles placed in service in calendar year 2001, Table 2 of this revenue procedure contains these amounts.

2001–9 I.R.B. 733 February 26, 2001

REV. PROC. 2001–19 TABLE 1

DEPRECIATION LIMITATIONS FOR AUTOMOBILES

(OTHER THAN ELECTRIC AUTOMOBILES) FIRST PLACED IN SERVICE IN CALENDAR YEAR 2001

Tax Year Amount

1st Tax Year $3,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775

REV. PROC. 2001–19 TABLE 2

DEPRECIATION LIMITATIONS FOR ELECTRIC AUTOMOBILES

FIRST PLACED IN SERVICE IN CALENDAR YEAR 2001

Tax Year Amount

1st Tax Year $9,280 2nd Tax Year $14,800 3rd Tax Year $8,850 Each Succeeding Year $5,325

3. Inclusions in Income of Lessees of Automobiles .

The inclusion amounts for automobiles first leased in calendar year 2001 are cal

culated under the procedures described in § 1.280F–7(a). Lessees of automobiles other than electric automobiles should use Table 3 of this revenue procedure in

applying these procedures, while lessees of electric automobiles should use Table 4 of this revenue procedure.

15,500 15,800 3 6 9 10 11 15,800 16,100 5 12 16 20 22 16,100 16,400 8 17 24 30 33 16,400 16,700 10 22 33 39 44 16,700 17,000 13 27 41 48 56 17,000 17,500 16 35 51 61 70 17,500 18,000 20 44 64 77 89 18,000 18,500 24 53 78 92 107 18,500 19,000 28 62 91 109 125 19,000 19,500 32 71 104 125 143 19,500 20,000 36 80 117 141 162 20,000 20,500 40 89 131 156 181 20,500 21,000 45 97 144 173 199 21,000 21,500 49 106 158 188 217 21,500 22,000 53 115 171 204 236 22,000 23,000 59 129 190 229 263 23,000 24,000 67 147 217 260 300 24,000 25,000 75 165 243 292 337 25,000 26,000 83 183 270 324 373

February 26, 2001 734 2001–9 I.R.B.

26,000 27,000 91 201 296 356 410 27,000 28,000 100 218 324 387 447 28,000 29,000 108 236 350 419 484 29,000 30,000 116 254 377 451 520 30,000 31,000 124 272 403 483 557 31,000 32,000 132 290 430 515 594 32,000 33,000 140 308 456 547 631 33,000 34,000 149 326 482 579 667 34,000 35,000 157 343 510 610 705 35,000 36,000 165 361 536 643 741 36,000 37,000 173 379 563 674 778 37,000 38,000 181 397 590 705 815 38,000 39,000 189 415 616 738 851 39,000 40,000 198 433 642 770 888 40,000 41,000 206 451 669 801 925 41,000 42,000 214 469 695 833 962 42,000 43,000 222 487 722 865 998 43,000 44,000 230 505 748 897 1,036 44,000 45,000 238 523 775 929 1,072 45,000 46,000 247 540 802 961 1,108 46,000 47,000 255 558 828 993 1,145 47,000 48,000 263 576 855 1,024 1,183 48,000 49,000 271 594 881 1,057 1,219 49,000 50,000 279 612 908 1,088 1,256 50,000 51,000 287 630 935 1,119 1,293 51,000 52,000 296 648 961 1,151 1,330 52,000 53,000 304 666 987 1,184 1,366 53,000 54,000 312 684 1,014 1,215 1,403 54,000 55,000 320 702 1,040 1,248 1,439 55,000 56,000 328 720 1,067 1,279 1,476 56,000 57,000 336 738 1,093 1,311 1,514 57,000 58,000 345 755 1,120 1,343 1,550 58,000 59,000 353 773 1,147 1,375 1,586 59,000 60,000 361 791 1,173 1,407 1,624 60,000 62,000 373 818 1,213 1,455 1,678 62,000 64,000 390 854 1,266 1,518 1,752 64,000 66,000 406 890 1,319 1,582 1,825 66,000 68,000 422 926 1,372 1,645 1,900 68,000 70,000 439 961 1,426 1,709 1,972 70,000 72,000 455 997 1,479 1,772 2,047 72,000 74,000 471 1,033 1,532 1,836 2,120 74,000 76,000 488 1,068 1,585 1,901 2,193 76,000 78,000 504 1,104 1,638 1,964 2,267 78,000 80,000 520 1,140 1,692 2,027 2,341 80,000 85,000 549 1,203 1,784 2,139 2,469 85,000 90,000 590 1,292 1,917 2,298 2,653 90,000 95,000 631 1,382 2,049 2,458 2,837 95,000 100,000 671 1,472 2,182 2,617 3,020 100,000 110,000 733 1,605 2,382 2,856 3,296

2001–9 I.R.B. 735 February 26, 2001

$ 47,000 48,000 9 21 33 40 46 48,000 49,000 17 39 60 71 83 49,000 50,000 25 57 86 104 119 50,000 51,000 33 75 113 135 157 51,000 52,000 42 93 139 167 193 52,000 53,000 50 111 165 199 230 53,000 54,000 58 129 192 231 266 54,000 55,000 66 147 218 263 304 55,000 56,000 74 165 245 295 340 56,000 57,000 82 183 272 326 377 57,000 58,000 91 200 299 358 414 58,000 59,000 99 218 325 390 451 59,000 60,000 107 236 352 422 487 60,000 62,000 119 263 391 470 543 62,000 64,000 136 298 445 533 616 64,000 66,000 152 334 498 597 690 66,000 68,000 168 370 551 661 763 68,000 70,000 185 406 604 724 837 70,000 72,000 201 442 657 788 910 72,000 74,000 217 478 710 852 984 74,000 76,000 234 513 764 915 1057 76,000 78,000 250 549 817 979 1131 78,000 80,000 266 585 870 1,043 1,204

February 26, 2001 736 2001–9 I.R.B.

80,000 85,000 295 648 962 1,155 1,332 85,000 90,000 336 737 1,095 1,314 1,517 90,000 95,000 377 826 1,229 1,472 1,701 95,000 100,000 417 916 1,361 1,632 1,885 100,000 110,000 479 1,050 1,560 1,871 2,161 110,000 120,000 560 1,230 1,825 2,190 2,528 120,000 130,000 642 1,408 2,092 2,508 2,895 130,000 140,000 724 1,587 2,357 2,826 3,264 140,000 150,000 805 1,767 2,622 3,145 3,631 150,000 160,000 887 1,946 2,888 3,463 3,998 160,000 170,000 969 2,124 3,154 3,782 4,366 170,000 180,000 1,050 2,304 3,419 4,100 4,374 180,000 190,000 1,132 2,483 3,684 4,419 5,102 190,000 200,000 1,214 2,661 3,951 4,737 5,469 200,000 210,000 1,295 2,841 4,216 5,055 5,837 210,000 220,000 1,377 3,020 4,481 5,374 6,205 220,000 230,000 1,459 3,199 4,747 5,692 6,572 230,000 240,000 1,540 3,378 5,013 6,010 6,940 240,000 250,000 1,622 3,557 5,278 6,329 7,308

4. Maximum Automobile Value for Using the Cents-per-mile Valuation Rule .

(1) Amount of Adjustment . Under § 1.61–21(e)(1)(iii)(A), the limitation on the fair market value of an employer-provided automobile first made available to any employee for personal use after 1988 is to be adjusted in accordance with § 280F(d)(7). Accordingly, the 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. See, section 4.02(1) of this revenue procedure. The new car component of the CPI was 115.2 for October 1987 and 138.6 for October 2000. The October 2000 index exceeded the October 1987 index by 23.4. The Internal Revenue Service has, therefore, determined that the adjustment for 2001 is 20.31 percent (23.4/115.2 x 100%). This adjustment is applicable to all employer-provided auto