SECTION 4. APPLICATION — Internal Revenue Bulletin 2014-11

.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 144.169 for October 2013. The October 2013 index exceeded the October 1987 index by 28.969. Therefore, the automobile price inflation adjustment for 2014 for passenger automobiles (other than trucks and vans) is 25.1 percent (28.969/115.2 x 100%). The dollar limitations in § 280F(a) are multiplied by a factor of 0.251, 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 2014. This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2014.

(b) Trucks and vans . To determine the dollar limitations for trucks and vans first placed in service during calendar year 2014, 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 151.877 for October 2013. The October 2013 index exceeded the October 1987 index by 39.477. Therefore, the automobile price inflation adjustment for 2014 for trucks and vans is 35.1 percent (39.477/ 112.4 x 100%). The dollar limitations in § 280F(a) are multiplied by a factor of 0.351, 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 2014.

(2) Amount of the limitation . Tables 1 and 2 contain the dollar amount of the

Bulletin No. 2014–11 641 March 10, 2014

depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2014.

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 2014.

DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2014

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. 2014–21 TABLE 2

DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN

SERVICE IN CALENDAR YEAR 2014

Tax Year Amount

1st Tax Year $ 3,460

2nd Tax Year $ 5,500

3rd Tax Year $ 3,350

Each Succeeding Year $ 1,975

.02 Inclusions in Income of Lessees of Passenger Automobiles .

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

clusion amounts for passenger automobiles first leased in calendar year 2014. In applying these procedures, lessees of passenger automobiles other than trucks and vans should use Table 3 of this revenue procedure, while lessees of trucks and vans should use Table 4 of this revenue procedure.

DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS)

WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2014

Fair Market Value of Passenger Automobile Tax Year During Lease

Over Not Over 1 ^st 2 ^nd 3 ^rd 4 ^th 5 ^th & later

$18,500 $19,000 3 5 8 10 11

19,000 19,500 3 6 10 11 13

19,500 20,000 3 8 11 13 14

20,000 20,500 4 8 13 14 17

20,500 21,000 4 9 14 17 18

21,000 21,500 5 10 15 18 21

21,500 22,000 5 11 17 20 22

22,000 23,000 6 13 18 23 25

23,000 24,000 7 14 22 26 29

24,000 25,000 8 16 25 29 33

25,000 26,000 8 19 27 32 38

26,000 27,000 9 20 31 35 42

March 10, 2014 642 Bulletin No. 2014–11

REV. PROC. 2014–21 TABLE 3

DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS)

WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2014

Fair Market Value of Passenger Automobile Tax Year During Lease

Over Not Over 1 ^st 2 ^nd 3 ^rd 4 ^th 5 ^th & later

27,000 28,000 10 22 33 40 45

28,000 29,000 11 24 36 43 49

29,000 30,000 12 26 39 46 53

30,000 31,000 13 28 41 50 57

31,000 32,000 14 30 44 53 61

32,000 33,000 14 32 47 56 65

33,000 34,000 15 34 50 59 69

34,000 35,000 16 36 52 64 72

35,000 36,000 17 38 55 67 76

36,000 37,000 18 39 59 70 80

37,000 38,000 19 41 61 74 84

38,000 39,000 20 43 64 77 88

39,000 40,000 21 45 67 80 92

40,000 41,000 21 47 70 84 96

41,000 42,000 22 49 73 87 100

42,000 43,000 23 51 75 91 104

43,000 44,000 24 53 78 94 108

44,000 45,000 25 55 81 97 112

45,000 46,000 26 56 84 101 116

46,000 47,000 27 58 87 104 120

47,000 48,000 28 60 90 107 124

48,000 49,000 28 62 93 111 127

49,000 50,000 29 64 96 114 131

50,000 51,000 30 66 98 118 135

51,000 52,000 31 68 101 121 139

52,000 53,000 32 70 104 124 143

53,000 54,000 33 72 106 128 147

54,000 55,000 34 74 109 131 151

55,000 56,000 34 76 112 135 155

56,000 57,000 35 78 115 138 159

57,000 58,000 36 80 118 141 163

58,000 59,000 37 81 121 145 167

59,000 60,000 38 83 124 148 171

60,000 62,000 39 86 128 153 177

62,000 64,000 41 90 134 159 185

64,000 66,000 43 94 139 167 192

66,000 68,000 44 98 145 173 201

68,000 70,000 46 102 150 180 209

70,000 72,000 48 105 156 188 216

72,000 74,000 50 109 162 194 224

74,000 76,000 51 113 168 200 232

76,000 78,000 53 117 173 208 239

Bulletin No. 2014–11 643 March 10, 2014

REV. PROC. 2014–21 TABLE 3

DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS)

WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2014

Fair Market Value of Passenger Automobile Tax Year During Lease

Over Not Over 1 ^st 2 ^nd 3 ^rd 4 ^th 5 ^th & later

78,000 80,000 55 120 179 215 247

80,000 85,000 58 127 189 226 261

85,000 90,000 62 137 203 243 281

90,000 95,000 67 146 217 260 301

95,000 100,000 71 156 231 277 320

100,000 110,000 77 170 253 303 349

110,000 120,000 86 189 281 337 389

120,000 130,000 95 208 310 370 428

130,000 140,000 103 228 337 405 467

140,000 150,000 112 247 366 438 507

150,000 160,000 121 266 394 473 545

160,000 170,000 130 284 423 507 585

170,000 180,000 138 304 451 541 624

180,000 190,000 147 323 479 575 663

190,000 200,000 156 342 507 609 703

200,000 210,000 164 361 536 643 742

210,000 220,000 173 380 565 676 781

220,000 230,000 182 399 593 710 821

230,000 240,000 190 418 622 744 860

240,000 and over 199 437 650 778 899

REV. PROC. 2014–21 TABLE 4

DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2014

Fair Market Value of Truck or Van Tax Year During Lease

Over Not Over 1 ^st 2 ^nd 3 ^rd 4 ^th 5 ^th & later

$19,000 $19,500 2 4 5 7 8

19,500 20,000 2 5 7 8 10

20,000 20,500 3 6 8 10 12

20,500 21,000 3 7 10 11 14

21,000 21,500 3 8 11 14 15

21,500 22,000 4 9 12 15 18

22,000 23,000 5 10 15 17 21

23,000 24,000 5 12 18 21 24

24,000 25,000 6 14 20 25 28

25,000 26,000 7 16 23 28 32

26,000 27,000 8 18 26 31 36

27,000 28,000 9 20 28 35 40

28,000 29,000 10 21 32 38 44

March 10, 2014 644 Bulletin No. 2014–11

REV. PROC. 2014–21 TABLE 4

DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2014

Fair Market Value of Truck or Van Tax Year During Lease

Over Not Over 1 ^st 2 ^nd 3 ^rd 4 ^th 5 ^th & later

29,000 30,000 11 23 35 41 48

30,000 31,000 11 26 37 45 52

31,000 32,000 12 27 41 48 56

32,000 33,000 13 29 43 52 60

33,000 34,000 14 31 46 55 64

34,000 35,000 15 33 49 58 68

35,000 36,000 16 35 51 62 72

36,000 37,000 17 37 54 65 76

37,000 38,000 18 38 58 69 79

38,000 39,000 18 41 60 72 83

39,000 40,000 19 43 63 75 87

40,000 41,000 20 44 66 79 91

41,000 42,000 21 46 69 82 95

42,000 43,000 22 48 72 85 99

43,000 44,000 23 50 74 89 103

44,000 45,000 24 52 77 93 106

45,000 46,000 24 54 80 96 111

46,000 47,000 25 56 83 99 115

47,000 48,000 26 58 86 102 119

48,000 49,000 27 60 88 106 123

49,000 50,000 28 62 91 109 127

50,000 51,000 29 63 95 113 130

51,000 52,000 30 65 97 117 134

52,000 53,000 31 67 100 120 138

53,000 54,000 31 69 103 123 142

54,000 55,000 32 71 106 126 146

55,000 56,000 33 73 108 130 150

56,000 57,000 34 75 111 133 154

57,000 58,000 35 77 114 137 157

58,000 59,000 36 79 116 141 161

59,000 60,000 37 80 120 144 165

60,000 62,000 38 84 123 149 172

62,000 64,000 40 87 130 155 180

64,000 66,000 41 91 136 162 187

66,000 68,000 43 95 141 169 195

68,000 70,000 45 99 146 176 203

70,000 72,000 47 102 153 182 211

72,000 74,000 48 107 158 189 219

74,000 76,000 50 110 164 196 227

76,000 78,000 52 114 169 203 235

78,000 80,000 54 118 175 209 243

Bulletin No. 2014–11 645 March 10, 2014

REV. PROC. 2014–21 TABLE 4

DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2014

Fair Market Value of Truck or Van Tax Year During Lease

Over Not Over 1 ^st 2 ^nd 3 ^rd 4 ^th 5 ^th & later

80,000 85,000 57 124 185 222 256

85,000 90,000 61 134 199 239 276

90,000 95,000 65 144 213 256 295

95,000 100,000 70 153 227 273 315

100,000 110,000 76 168 248 298 345

110,000 120,000 85 187 277 332 383

120,000 130,000 93 206 305 366 423

130,000 140,000 102 225 334 400 462

140,000 150,000 111 244 362 434 501

150,000 160,000 120 263 390 468 541

160,000 170,000 128 282 419 502 580

170,000 180,000 137 301 447 536 619

180,000 190,000 146 320 475 571 658

190,000 200,000 154 339 504 604 698

200,000 210,000 163 358 532 639 736

210,000 220,000 172 377 561 672 776

220,000 230,000 180 397 589 706 815

230,000 240,000 189 416 617 740 854

240,000 and over 198 435 645 774 894