SECTION 4. APPLICATION

1. In General. (1) Limitations on Depreciation Deductions for Certain Automobiles. The limitations on depreciation deductions for passenger automobiles placed in service by the taxpayer for the first time during calendar year 2007 are found in Tables 1 and 2 in section 4.02(2) of this revenue procedure. Table 1 of this revenue procedure provides limitations on depreciation deductions for a passenger automobile (other than a truck or van). Table 2 of this revenue procedure provides limitations on depreciation deductions for a truck or van.

(2) Inclusions in Income of Lessees of Passenger Automobiles. A taxpayer first leasing a passenger automobile during calendar year 2007 must determine the inclusion amount that is added to gross income using the tables in section 4.03 of this revenue procedure. The inclusion amount is determined using Table 3 in the case of a passenger automobile (other than a truck or van), and Table 4 in the case of a truck or van. In addition, the procedures of § 1.280F–7(a) must be followed.

2. Limitations on Depreciation Deductions for Certain Automobiles.

(1) Amount of the Inflation Adjustment. 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 136.3 for October 2006. The October 2006 index exceeded the October 1987 index by 21.1. The Service has, therefore, determined that the automobile price inflation adjustment for 2007 for passenger automobiles (other than trucks and vans) is 18.32 percent (21.1/115.2 x

Industries). For further information regarding this notice, contact Ms. Park at (202) 622–3120 (not a toll-free call).

26 CFR 601.105: Examination of returns and claims for refund, credit, or abatement; determination of correct tax liability. (Also: Part I, §§ 280F; 1.280F–7.)

Rev. Proc. 2007–30