Part III. Administrative, Procedural, and Miscellaneous

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 new car component of the CPI was 115.2 for October 1987 and 137.851 for October 2009. The October 2009 index exceeded the October 1987 index by 22.651. Therefore, the automobile price inflation adjustment for 2010 for passenger automobiles (other than trucks and vans) is 19.66 percent (22.651/115.2 x 100%). The dollar limitations in § 280F(a) are multiplied by a factor of 0.1966, 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 trucks and vans) for calendar year 2010. This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2010.

(b) Trucks and vans . To determine the dollar limitations for trucks and vans first placed in service during calendar year 2010, the new truck component of the CPI is used instead of the new car component. The new truck component of the CPI was 112.4 for October 1987 and 140.897 for October 2009. The October 2009 index exceeded the October 1987 index by 28.497. Therefore, the automobile price inflation adjustment for 2010 for trucks and vans is 25.35 percent (28.497/112.4 x 100%). The dollar limitations in § 280F(a) are multiplied by a factor of 0.2535, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations for trucks and vans. This adjustment applies to all trucks and vans that are first placed in service in calendar year 2010.

(2) Amount of the limitation . Tables 1 and 2 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2010. Use Table 1 for a passenger automobile (other than a truck or van) and Table 2 for a truck or van placed in service in calendar year 2010.

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. 2010–18