SECTION 4. APPLICATION

.01 Limitations on Depreciation Deduc- tions for Certain Automobiles .

(1) Amount of the inflation adjustment . (a) Passenger automobiles (other than trucks or vans) . 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. Section 280F(d)(7)(B)(ii) defines the term “CPI automobile component” 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 137.880 for October 2010. The October 2010 index exceeded the October 1987 index by 22.680. Therefore, the automobile price inflation adjustment for 2011 for passenger automobiles (other than trucks and vans) is 19.69 percent (22.680/115.2 x 100%). The dollar limitations in § 280F(a) are multiplied by a factor of 0.1969, 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 2011. This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2011. (b) Trucks and vans . To determine the dollar limitations for trucks and vans first placed in service during calendar year 2011, the Service uses the new truck component of the CPI instead of the new car component. The new truck component of the CPI was 112.4 for October 1987 and 142.556 for October 2010. The October 2010 index exceeded the October 1987 index by 30.156. Therefore, the automobile price inflation adjustment for

REV. PROC. 2011–21 TABLE 1

DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES

(THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2011 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR

DEPRECIATION DEDUCTION APPLIES

Tax Year Amount

1st Tax Year $11,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775

March 21, 2011 561 2011–12 I.R.B.

REV. PROC. 2011–21 TABLE 2

DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2011 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR

DEPRECIATION DEDUCTION APPLIES

Tax Year Amount

1st Tax Year $11,260 2nd Tax Year $5,200 3rd Tax Year $3,150 Each Succeeding Year $1,875

REV. PROC. 2011–21 TABLE 3

DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2011 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY

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. 2011–21 TABLE 4

DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2011 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR

DEPRECIATION DEDUCTION DOES NOT APPLY

Tax Year Amount

1st Tax Year $3,260 2nd Tax Year $5,200 3rd Tax Year $3,150 Each Succeeding Year $1,875

should use Table 5 of this revenue procedure, while lessees of trucks and vans should use Table 6 of this revenue procedure.

.02 Inclusions in Income of Lessees of Passenger Automobiles .

A taxpayer must follow the procedures in § 1.280F–7(a) for determining the inclu

sion amounts for passenger automobiles first leased in calendar year 2011. In applying these procedures, lessees of passenger automobiles other than trucks and vans

REV. PROC. 2011–21 TABLE 5
DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES
(THAT ARE NOT TRUCKS OR VANS)
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2011

2011–12 I.R.B. 562 March 21, 2011

REV. PROC. 2011–21 TABLE 5—Continued
DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES
(THAT ARE NOT TRUCKS OR VANS)
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2011

22,000
23,000
7
16
23
29
32
23,000
24,000
8
18
27
32
37
24,000
25,000
9
20
30
36
42
25,000
26,000
10
23
33
40
46
26,000
27,000
11
25
36
44
51
27,000
28,000
12
27
40
48
55
28,000
29,000
13
29
43
52
60
29,000
30,000
14
31
47
55
65
30,000
31,000
15
34
49
60
69
31,000
32,000
16
36
53
63
73
32,000
33,000
17
38
56
68
77
33,000
34,000
18
40
60
71
82
34,000
35,000
19
42
63
75
87
35,000
36,000
20
45
66
79
91
36,000
37,000
21
47
69
83
96
37,000
38,000
22
49
73
87
100
38,000
39,000
23
51
76
91
105
39,000
40,000
24
53
80
94
110
40,000
41,000
25
56
82
99
114
41,000
42,000
26
58
86
102
119
42,000
43,000
27
60
89
107
123
43,000
44,000
28
62
93
110
128
44,000
45,000
29
64
96
114
133
45,000
46,000
30
67
98
119
137
46,000
47,000
31
69
102
122
141
47,000
48,000
32
71
105
127
145
48,000
49,000
33
73
109
130
150
49,000
50,000
34
76
111
134
155
50,000
51,000
35
78
115
138
159
51,000
52,000
36
80
118
142
164
52,000
53,000
37
82
122
146
168
53,000
54,000
38
84
125
150
173
54,000
55,000
39
87
128
153
178
55,000
56,000
40
89
131
158
182
56,000
57,000
41
91
135
161
187
57,000
58,000
42
93
138
166
191
58,000
59,000
43
95
142
169
196
59,000
60,000
44
98
144
174
200
60,000
62,000
46
101
149
179
207
62,000
64,000
48
105
156
187
216
64,000
66,000
50
109
163
195
225
66,000
68,000
52
114
169
203
234
68,000
70,000
54
118
176
211
243
70,000
72,000
56
123
182
218
253
72,000
74,000
58
127
189
226
262
74,000
76,000
60
132
195
234
270
76,000
78,000
62
136
202
242
279
78,000
80,000
64
140
209
250
288
80,000
85,000
67
148
220
264
304
85,000
90,000
72
159
237
283
327
90,000
95,000
77
170
253
303
350
95,000
100,000
82
181
269
323
372
100,000
110,000
90
198
293
352
406

March 21, 2011 563 2011–12 I.R.B.

REV. PROC. 2011–21 TABLE 5—Continued
DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES
(THAT ARE NOT TRUCKS OR VANS)
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2011

REV. PROC. 2011–21 TABLE 6
DOLLAR AMOUNTS FOR TRUCKS AND VANS
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2011

REV. PROC. 2011–21 TABLE 5—Continued
DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES
(THAT ARE NOT TRUCKS OR VANS)
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2011

128|$19,000
$19,500
3
7
9
12
13
19,500
20,000
3
8
11
14
15
20,000
20,500
4
9
13
15
18
20,500
21,000
4
10
15
17
20
21,000
21,500
5
11
16
20
22
21,500
22,000
5
12
18
22
24
22,000
23,000
6
14
20
24
29
23,000
24,000
7
16
24
28
32
24,000
25,000
8
18
27
32
37
25,000
26,000
9
20
31
36
41
26,000
27,000
10
23
33
40
46
27,000
28,000
11
25
37
43
51
28,000
29,000
12
27
40
48
55
29,000
30,000
13
29
43
52
60
30,000
31,000
14
31
47
56
64
31,000
32,000
15
34
49
60
69
32,000
33,000
16
36
53
63
74
33,000
34,000
17
38
56
68
78
34,000
35,000
18
40
60
71
83
35,000
36,000
19
43
62
76
87
36,000
37,000
20
45
66
79
92
37,000
38,000
21
47
69
83
97
38,000
39,000
22
49
73
87
101
39,000
40,000
23
51
76
91
105
40,000
41,000
24
54
79
95
109
41,000
42,000
25
56
82
99
114
42,000
43,000
26
58
86
103
118
43,000
44,000
27
60
89
107
123
44,000
45,000
28
62
93
110
128|$19,000
$19,500
3
7
9
12
13
19,500
20,000
3
8
11
14
15
20,000
20,500
4
9
13
15
18
20,500
21,000
4
10
15
17
20
21,000
21,500
5
11
16
20
22
21,500
22,000
5
12
18
22
24
22,000
23,000
6
14
20
24
29
23,000
24,000
7
16
24
28
32
24,000
25,000
8
18
27
32
37
25,000
26,000
9
20
31
36
41
26,000
27,000
10
23
33
40
46
27,000
28,000
11
25
37
43
51
28,000
29,000
12
27
40
48
55
29,000
30,000
13
29
43
52
60
30,000
31,000
14
31
47
56
64
31,000
32,000
15
34
49
60
69
32,000
33,000
16
36
53
63
74
33,000
34,000
17
38
56
68
78
34,000
35,000
18
40
60
71
83
35,000
36,000
19
43
62
76
87
36,000
37,000
20
45
66
79
92
37,000
38,000
21
47
69
83
97
38,000
39,000
22
49
73
87
101
39,000
40,000
23
51
76
91
105
40,000
41,000
24
54
79
95
109
41,000
42,000
25
56
82
99
114
42,000
43,000
26
58
86
103
118
43,000
44,000
27
60
89
107
123
44,000
45,000
28
62
93
110
128|

2011–12 I.R.B. 564 March 21, 2011

REV. PROC. 2011–21 TABLE 6—Continued
DOLLAR AMOUNTS FOR TRUCKS AND VANS
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2011

45,000
46,000
29
65
95
115
132
46,000
47,000
30
67
99
118
137
47,000
48,000
31
69
102
123
141
48,000
49,000
32
71
106
126
146
49,000
50,000
33
73
109
130
151
50,000
51,000
34
76
112
134
155
51,000
52,000
35
78
115
138
160
52,000
53,000
36
80
118
143
164
53,000
54,000
37
82
122
146
169
54,000
55,000
38
84
125
150
173
55,000
56,000
39
87
128
154
177
56,000
57,000
40
89
131
158
182
57,000
58,000
41
91
135
162
186
58,000
59,000
42
93
138
166
191
59,000
60,000
43
95
142
169
196
60,000
62,000
45
99
146
175
203
62,000
64,000
47
103
153
183
212
64,000
66,000
49
107
160
191
221
66,000
68,000
51
112
166
199
229
68,000
70,000
53
116
173
206
239
70,000
72,000
55
121
179
214
248
72,000
74,000
57
125
186
222
257
74,000
76,000
59
129
192
231
266
76,000
78,000
61
134
198
239
275
78,000
80,000
63
138
205
246
285
80,000
85,000
66
146
217
260
300
85,000
90,000
71
157
233
280
322
90,000
95,000
76
168
250
299
345
95,000
100,000
81
179
266
319
368
100,000
110,000
89
196
290
348
402
110,000
120,000
99
218
323
387
447
120,000
130,000
109
240
355
427
493
130,000
140,000
119
262
388
466
538
140,000
150,000
129
284
421
505
583
150,000
160,000
139
306
454
544
629
160,000
170,000
149
328
487
583
674
170,000
180,000
159
350
519
623
719
180,000
190,000
169
372
552
662
765
190,000
200,000
179
394
585
701
810
200,000
210,000
189
416
618
740
856
210,000
220,000
199
438
651
779
901
220,000
230,000
209
460
683
819
946
230,000
240,000
219
482
716
858
992
240,000
And up
229
504
749
897
1,037

applies, Table 8 of this revenue procedure contains the revised dollar amount of the depreciation limitations for each taxable year. If the § 168(k) additional first year depreciation deduction does not apply to a passenger automobile placed in service by the taxpayer in calendar year 2010, the depreciation limitations for each taxable year in Tables 1 and 2 of Rev. Proc. 2010–18 apply.

.03 Revised Amounts for Passenger Au- tomobiles Placed in Service During 2010 .

(1) Calculation of the Revised Amount . The revised depreciation limits provided in this section 4.03 were calculated by increasing the existing limitations on the first year allowance in Rev. Proc. 2010–18 by $8,000 as provided in § 168(k)(2)(F)(i).

(2) Amount of the Revised Limitatio n. For passenger automobiles (that are not

trucks or vans) placed in service by the taxpayer in calendar year 2010 for which the § 168(k) additional first year depreciation deduction applies, Table 7 of this revenue procedure contains the revised dollar amount of the depreciation limitations for each taxable year. For trucks or vans placed in service by the taxpayer in calendar year 2010 for which the § 168(k) additional first year depreciation deduction

March 21, 2011 565 2011–12 I.R.B.

REV. PROC. 2011–21 TABLE 7

DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES

(THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2010 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR

DEPRECIATION DEDUCTION APPLIES

Tax Year Amount

1st Tax Year $11,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775

REV. PROC. 2011–21 TABLE 8

DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2010 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR

DEPRECIATION DEDUCTION APPLIES

Tax Year Amount

1st Tax Year $11,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875