SECTION 4. APPLICATION — Internal Revenue Bulletin 2012-14

.01 Limitations on Depreciation Deductions 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 143.419 for October 2011. The October 2011 index exceeded the October 1987 index by 28.219. Therefore, the automobile price inflation adjustment for 2012 for passenger automobiles (other than trucks and vans) is 24.5 percent (28.219/115.2 x 100%). The dollar limitations in § 280F(a) are multiplied by a factor of 0.245, 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 2012. This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2012.

(b) Trucks and vans . To determine the dollar limitations for trucks and vans first placed in service during calendar year 2012, 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 146.607 for October 2011. The Oc

REV. PROC. 2012–23 TABLE 1

DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR

2012 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

April 2, 2012 713 2012–14 I.R.B.

REV. PROC. 2012–23 TABLE 2

DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR

DEPRECIATION DEDUCTION APPLIES

Tax Year Amount

1st Tax Year $11,360 2nd Tax Year $5,300 3rd Tax Year $3,150 Each Succeeding Year $1,875

REV. PROC. 2012–23 TABLE 3

DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR

2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY

Tax Year Amount

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

REV. PROC. 2012–23 TABLE 4

DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN

CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR

DEPRECIATION DEDUCTION DOES NOT APPLY

Tax Year Amount

1st Tax Year $3,360 2nd Tax Year $5,300 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 2012. In applying these procedures, lessees of passenger automobiles other than trucks and vans

REV. PROC. 2012–23 TABLE 5
DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES
(THAT ARE NOT TRUCKS OR VANS)
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012

Fair Market Value of Passenger 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 Passenger Automobile Over Not Over	1st	2nd	3rd	4th	5th & Later
$18,500 $19,000 2 4 5 6 8 19,000 19,500 2 4 7 7 9 19,500 20,000 2 5 8 8 10 20,000 20,500 3 5 9 10 11 20,500 21,000 3 6 9 12 12 21,000 21,500 3 7 10 12 14 21,500 22,000 3 8 11 13 16

2012–14 I.R.B. 714 April 2, 2012

REV. PROC. 2012–23 TABLE 5
DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES
(THAT ARE NOT TRUCKS OR VANS)
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012

Fair Market Value of Passenger 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 Passenger Automobile Over Not Over	1st	2nd	3rd	4th	5th & Later

22,000
23,000
4
8
13
15
17
23,000
24,000
4
10
15
17
20
24,000
25,000
5
11
17
19
23
25,000
26,000
6
12
19
21
26
26,000
27,000
6
14
20
24
28
27,000
28,000
7
15
22
26
31
28,000
29,000
7
16
25
28
33
29,000
30,000
8
18
25
32
35
30,000
31,000
9
19
27
34
38
31,000
32,000
9
20
30
36
41
32,000
33,000
10
21
32
38
43
33,000
34,000
10
23
33
41
46
34,000
35,000
11
24
35
43
49
35,000
36,000
12
25
37
45
52
36,000
37,000
12
27
39
47
54
37,000
38,000
13
28
41
49
57
38,000
39,000
13
29
43
52
59
39,000
40,000
14
30
45
54
62
40,000
41,000
14
32
47
56
65
41,000
42,000
15
33
49
58
68
42,000
43,000
16
34
51
61
70
43,000
44,000
16
36
52
63
73
44,000
45,000
17
37
54
66
75
45,000
46,000
17
38
57
67
78
46,000
47,000
18
39
59
70
80
47,000
48,000
19
40
61
72
83
48,000
49,000
19
42
62
75
86
49,000
50,000
20
43
64
77
89
50,000
51,000
20
45
66
79
91
51,000
52,000
21
46
68
81
94
52,000
53,000
21
47
70
84
96
53,000
54,000
22
48
72
86
99
54,000
55,000
23
49
74
88
102
55,000
56,000
23
51
76
90
104
56,000
57,000
24
52
78
92
107
57,000
58,000
24
54
79
95
110
58,000
59,000
25
55
81
97
113
59,000
60,000
26
56
83
100
115
60,000
62,000
26
58
86
103
119
62,000
64,000
28
60
90
108
124
64,000
66,000
29
63
94
112
129
66,000
68,000
30
66
97
117
135
68,000
70,000
31
68
102
121
140
70,000
72,000
32
71
105
126
145
72,000
74,000
33
74
109
130
151
74,000
76,000
35
76
113
135
156
76,000
78,000
36
78
117
140
161
78,000
80,000
37
81
120
145
166
80,000
85,000
39
86
127
152
176
85,000
90,000
42
92
137
163
189
90,000
95,000
45
98
147
175
202
95,000
100,000
48
105
155
187
215
100,000
110,000
52
115
170
203
235
110,000
120,000
58
127
189
227
262

April 2, 2012 715 2012–14 I.R.B.

REV. PROC. 2012–23 TABLE 5
DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES
(THAT ARE NOT TRUCKS OR VANS)
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012

Fair Market Value of Passenger 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 Passenger Automobile Over Not Over	1st	2nd	3rd	4th	5th & Later
120,000 130,000 64 140 208 250 288 130,000 140,000 70 153 227 272 315 140,000 150,000 75 166 246 296 340 150,000 160,000 81 179 265 318 368 160,000 170,000 87 192 284 341 394 170,000 180,000 93 204 304 364 420 180,000 190,000 99 217 323 387 446 190,000 200,000 105 230 342 409 473 200,000 210,000 111 243 361 432 499 210,000 220,000 116 256 380 455 526 220,000 230,000 122 269 399 478 552 230,000 240,000 128 282 418 501 578 240,000 and up 134 294 437 524 605

REV. PROC. 2012–23 TABLE 6
DOLLAR AMOUNTS FOR TRUCKS AND VANS
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012

Fair Market Value of Truck or Van 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 Truck or Van Over Not Over	1st	2nd	3rd	4th	5th & Later

REV. PROC. 2012–23 TABLE 5
DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES
(THAT ARE NOT TRUCKS OR VANS)
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012

$19,000 $19,500 1 4 5 6 7 19,500 20,000 2 4 6 7 9 20,000 20,500 2 5 7 8 10 20,500 21,000 2 5 8 10 11 21,000 21,500 3 6 9 10 13 21,500 22,000 3 6 10 12 14 22,000 23,000 3 8 11 14 15 23,000 24,000 4 9 13 16 18 24,000 25,000 4 10 15 19 21 25,000 26,000 5 11 17 21 24 26,000 27,000 6 12 19 23 26 27,000 28,000 6 14 21 25 29 28,000 29,000 7 15 23 27 32 29,000 30,000 7 17 24 30 34 30,000 31,000 8 18 26 32 37 31,000 32,000 9 19 28 34 40 32,000 33,000 9 20 31 36 42 33,000 34,000 10 21 33 39 44 34,000 35,000 10 23 34 41 48 35,000 36,000 11 24 36 44 50 36,000 37,000 12 25 38 46 53 37,000 38,000 12 27 40 48 55 38,000 39,000 13 28 42 50 58 39,000 40,000 13 29 44 53 60 40,000 41,000 14 31 45 55 63 41,000 42,000 14 32 48 57 66 42,000 43,000 15 33 50 59 69 43,000 44,000 16 34 52 61 72 44,000 45,000 16 36 53 64 74 45,000 46,000 17 37 55 66 77 46,000 47,000 17 38 58 68 79	$19,000 $19,500 1 4 5 6 7 19,500 20,000 2 4 6 7 9 20,000 20,500 2 5 7 8 10 20,500 21,000 2 5 8 10 11 21,000 21,500 3 6 9 10 13 21,500 22,000 3 6 10 12 14 22,000 23,000 3 8 11 14 15 23,000 24,000 4 9 13 16 18 24,000 25,000 4 10 15 19 21 25,000 26,000 5 11 17 21 24 26,000 27,000 6 12 19 23 26 27,000 28,000 6 14 21 25 29 28,000 29,000 7 15 23 27 32 29,000 30,000 7 17 24 30 34 30,000 31,000 8 18 26 32 37 31,000 32,000 9 19 28 34 40 32,000 33,000 9 20 31 36 42 33,000 34,000 10 21 33 39 44 34,000 35,000 10 23 34 41 48 35,000 36,000 11 24 36 44 50 36,000 37,000 12 25 38 46 53 37,000 38,000 12 27 40 48 55 38,000 39,000 13 28 42 50 58 39,000 40,000 13 29 44 53 60 40,000 41,000 14 31 45 55 63 41,000 42,000 14 32 48 57 66 42,000 43,000 15 33 50 59 69 43,000 44,000 16 34 52 61 72 44,000 45,000 16 36 53 64 74 45,000 46,000 17 37 55 66 77 46,000 47,000 17 38 58 68 79	$19,000 $19,500 1 4 5 6 7 19,500 20,000 2 4 6 7 9 20,000 20,500 2 5 7 8 10 20,500 21,000 2 5 8 10 11 21,000 21,500 3 6 9 10 13 21,500 22,000 3 6 10 12 14 22,000 23,000 3 8 11 14 15 23,000 24,000 4 9 13 16 18 24,000 25,000 4 10 15 19 21 25,000 26,000 5 11 17 21 24 26,000 27,000 6 12 19 23 26 27,000 28,000 6 14 21 25 29 28,000 29,000 7 15 23 27 32 29,000 30,000 7 17 24 30 34 30,000 31,000 8 18 26 32 37 31,000 32,000 9 19 28 34 40 32,000 33,000 9 20 31 36 42 33,000 34,000 10 21 33 39 44 34,000 35,000 10 23 34 41 48 35,000 36,000 11 24 36 44 50 36,000 37,000 12 25 38 46 53 37,000 38,000 12 27 40 48 55 38,000 39,000 13 28 42 50 58 39,000 40,000 13 29 44 53 60 40,000 41,000 14 31 45 55 63 41,000 42,000 14 32 48 57 66 42,000 43,000 15 33 50 59 69 43,000 44,000 16 34 52 61 72 44,000 45,000 16 36 53 64 74 45,000 46,000 17 37 55 66 77 46,000 47,000 17 38 58 68 79	$19,000 $19,500 1 4 5 6 7 19,500 20,000 2 4 6 7 9 20,000 20,500 2 5 7 8 10 20,500 21,000 2 5 8 10 11 21,000 21,500 3 6 9 10 13 21,500 22,000 3 6 10 12 14 22,000 23,000 3 8 11 14 15 23,000 24,000 4 9 13 16 18 24,000 25,000 4 10 15 19 21 25,000 26,000 5 11 17 21 24 26,000 27,000 6 12 19 23 26 27,000 28,000 6 14 21 25 29 28,000 29,000 7 15 23 27 32 29,000 30,000 7 17 24 30 34 30,000 31,000 8 18 26 32 37 31,000 32,000 9 19 28 34 40 32,000 33,000 9 20 31 36 42 33,000 34,000 10 21 33 39 44 34,000 35,000 10 23 34 41 48 35,000 36,000 11 24 36 44 50 36,000 37,000 12 25 38 46 53 37,000 38,000 12 27 40 48 55 38,000 39,000 13 28 42 50 58 39,000 40,000 13 29 44 53 60 40,000 41,000 14 31 45 55 63 41,000 42,000 14 32

48
57
66
42,000
43,000
15
33
50
59
69
43,000
44,000
16
34
52
61
72
44,000
45,000
16
36
53
64
74
45,000
46,000
17
37
55
66
77
46,000
47,000
17
38
58
68
79|$19,000
$19,500
1
4
5
6
7
19,500
20,000
2
4
6
7
9
20,000
20,500
2
5
7
8
10
20,500
21,000
2
5
8
10
11
21,000
21,500
3
6
9
10
13
21,500
22,000
3
6
10
12
14
22,000
23,000
3
8
11
14
15
23,000
24,000
4
9
13
16
18
24,000
25,000
4
10
15
19
21
25,000
26,000
5
11
17
21
24
26,000
27,000
6
12
19
23
26
27,000
28,000
6
14
21
25
29
28,000
29,000
7
15
23
27
32
29,000
30,000
7
17
24
30
34
30,000
31,000
8
18
26
32
37
31,000
32,000
9
19
28
34
40
32,000
33,000
9
20
31
36
42
33,000
34,000
10
21
33
39
44
34,000
35,000
10
23
34
41
48
35,000
36,000
11
24
36
44
50
36,000
37,000
12
25
38
46
53
37,000
38,000
12
27
40
48
55
38,000
39,000
13
28
42
50
58
39,000
40,000
13
29
44
53
60
40,000
41,000
14
31
45
55
63
41,000
42,000
14
32
48
57
66
42,000
43,000
15
33
50
59
69
43,000
44,000
16
34
52
61
72
44,000
45,000
16
36
53
64
74
45,000
46,000
17
37
55
66
77
46,000
47,000
17
38
58
68
79|$19,000
$19,500
1
4
5
6
7
19,500
20,000
2
4
6
7
9
20,000
20,500
2
5
7
8
10
20,500
21,000
2
5
8
10
11
21,000
21,500
3
6
9
10
13
21,500
22,000
3
6
10
12
14
22,000
23,000
3
8
11
14
15
23,000
24,000
4
9
13
16
18
24,000
25,000
4
10
15
19
21
25,000
26,000
5
11
17
21
24
26,000
27,000
6
12
19
23
26
27,000
28,000
6
14
21
25
29
28,000
29,000
7
15
23
27
32
29,000
30,000
7
17
24
30
34
30,000
31,000
8
18
26
32
37
31,000
32,000
9
19
28
34
40
32,000
33,000
9
20
31
36
42
33,000
34,000
10
21
33
39
44
34,000
35,000
10
23
34
41
48
35,000
36,000
11
24
36
44
50
36,000
37,000
12
25
38
46
53
37,000
38,000
12
27
40
48
55
38,000
39,000
13
28
42
50
58
39,000
40,000
13
29
44
53
60
40,000
41,000
14
31
45
55
63
41,000
42,000
14
32
48
57
66
42,000
43,000
15
33
50
59
69
43,000
44,000
16
34
52
61
72
44,000
45,000
16
36
53
64
74
45,000
46,000
17
37
55
66
77
46,000
47,000
17
38
58
68
79|

2012–14 I.R.B. 716 April 2, 2012

REV. PROC. 2012–23 TABLE 6
DOLLAR AMOUNTS FOR TRUCKS AND VANS
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012

Fair Market Value of Truck or Van 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 Truck or Van Over Not Over	1st	2nd	3rd	4th	5th & Later

47,000
48,000
18
40
59
70
82
48,000
49,000
19
41
61
73
84
49,000
50,000
19
42
63
75
87
50,000
51,000
20
43
65
78
89
51,000
52,000
20
45
66
80
93
52,000
53,000
21
46
68
83
95
53,000
54,000
21
48
70
84
98
54,000
55,000
22
49
72
87
100
55,000
56,000
23
50
74
89
103
56,000
57,000
23
51
76
92
105
57,000
58,000
24
52
78
94
108
58,000
59,000
24
54
80
96
111
59,000
60,000
25
55
82
98
114
60,000
62,000
26
57
85
101
118
62,000
64,000
27
60
88
106
123
64,000
66,000
28
62
93
110
128
66,000
68,000
29
65
96
115
134
68,000
70,000
30
67
100
120
139
70,000
72,000
32
70
103
125
144
72,000
74,000
33
72
108
129
149
74,000
76,000
34
75
111
134
155
76,000
78,000
35
78
115
138
160
78,000
80,000
36
80
119
143
165
80,000
85,000
38
85
125
151
175
85,000
90,000
41
91
135
163
187
90,000
95,000
44
98
144
174
201
95,000
100,000
47
104
154
185
214
100,000
110,000
52
113
169
202
234
110,000
120,000
57
127
187
225
261
120,000
130,000
63
139
207
248
287
130,000
140,000
69
152
226
271
313
140,000
150,000
75
165
245
294
339
150,000
160,000
81
178
264
316
366
160,000
170,000
87
190
283
340
392
170,000
180,000
92
204
302
362
419
180,000
190,000
98
216
322
385
445
190,000
200,000
104
229
340
409
471
200,000
210,000
110
242
359
431
498
210,000
220,000
116
255
378
454
524
220,000
230,000
122
267
398
477
551
230,000
240,000
127
281
416
500
577
240,000
and up
133
294
435
523
603