§280F Limitation on depreciation for luxury automobiles; limitation where certain property used for personal purposes

Inflation Adjusted Items for Certain Calendar YearsFor inflation adjustment of certain items in this section, see Revenue Procedures listed in a table below.

2017—Subsec. (a)(1)(A)(i). Pub. L. 115–97, § 13202(a)(1)(A), substituted “$10,000” for “$2,560”. Subsec. (a)(1)(A)(ii). Pub. L. 115–97, § 13202(a)(1)(B), substituted “$16,000” for “$4,100”. Subsec. (a)(1)(A)(iii). Pub. L. 115–97, § 13202(a)(1)(C), substituted “$9,600” for “$2,450”. Subsec. (a)(1)(A)(iv). Pub. L. 115–97, § 13202(a)(1)(D), substituted “$5,760” for “$1,475”. Subsec. (a)(1)(B)(ii). Pub. L. 115–97, § 13202(a)(2)(A), substituted “$5,760” for “$1,475” in heading and text. Subsec. (d)(4)(A)(iv), (v). Pub. L. 115–97, § 13202(b)(1), redesignated cl. (v) as (iv) and struck out former cl. (iv) which read as follows: “any computer or peripheral equipment (as defined in section 168(i)(2)(B)), ‘and’ ”. Subsec. (d)(4)(B), (C). Pub. L. 115–97, § 13202(b)(2), redesignated subpar. (C) as (B) and struck out former subpar. (B). Prior to amendment, text of subpar. (B) read as follows: “The term ‘listed property’ shall not include any computer or peripheral equipment (as so defined) used exclusively at a regular business establishment and owned or leased by the person operating such establishment. For purposes of the preceding sentence, any portion of a dwelling unit shall be treated as a regular business establishment if (and only if) the requirements of section 280A(c)(1) are met with respect to such portion.” Subsec. (d)(7)(A). Pub. L. 115–97, § 13202(a)(2)(B)(i), substituted “2018” for “1988”. Subsec. (d)(7)(B). Pub. L. 115–97, § 11002(d)(8), amended subpar. (B) generally. Prior to amendment, subpar. (B) related to automobile price inflation adjustment. Subsec. (d)(7)(B)(i)(II). Pub. L. 115–97, § 13202(a)(2)(B)(ii), substituted “2017” for “1987”. 2014—Subsec. (a)(1)(C). Pub. L. 113–295, § 221(a)(34)(E), struck out subpar. (C) which related to special rules for certain automobiles modified to be propelled by a clean burning fuel and for purpose built passenger vehicles that were placed in service between Aug. 5, 1997, and Jan. 1, 2007. Subsec. (d)(8), (10). Pub. L. 113–295, § 220(j), substituted “subsection (a)(1)” for “subsection (a)(2)”. 2010—Subsec. (d)(4)(A). Pub. L. 111–240 inserted “ ‘and’ ” at end of clause (iv), redesignated clause (vi) as (v), and struck out former cl. (v) which read as follows: “any cellular telephone (or other similar telecommunications equipment), and”. 2002—Subsec. (a)(1)(C)(iii). Pub. L. 107–147 added cl. (iii). 1998—Subsec. (a)(1)(C)(ii). Pub. L. 105–206 substituted “subparagraphs (A) and (B)” for “subparagraph (A)”. 1997—Subsec. (a)(1)(C). Pub. L. 105–34 added subpar. (C). 1996—Subsec. (a). Pub. L. 104–188 struck out “investment tax credit and” after “amount of” in heading. 1990—Pub. L. 101–508, § 11813(b)(13)(E), struck out “investment tax credit and” after “Limitation on” in section catchline. Subsec. (a)(1). Pub. L. 101–508, § 11813(b)(13)(A)(i), redesignated par. (2) as (1) and struck out former par. (1) “Investment tax credit” which read as follows: “The amount of the credit determined under section 46(a) for any passenger automobile shall not exceed $675.” Subsec. (a)(2). Pub. L. 101–508, § 11813(b)(13)(A)(i), redesignated par. (3) as (2). Former par. (2) redesignated (1). Subsec. (a)(2)(B). Pub. L. 101–508, § 11813(b)(13)(A)(ii), struck out “the credit determined under section 46(a) or” after “the amount of”. Subsec. (a)(3). Pub. L. 101–508, § 11813(b)(13)(A)(i), redesignated par. (3) as (2). Subsec. (a)(4). Pub. L. 101–508, § 11813(b)(13)(A)(i), struck out par. (4) “Special rule where election of reduced credit in lieu of the basis adjustment” which read as follows: “In the case of any election under section 48(q)(4) with respect to any passenger automobile, the limitation of paragraph (1) applicable to such passenger automobile shall be ⅔ of the amount which would be so applicable but for this paragraph.” Subsec. (b). Pub. L. 101–508, § 11813(b)(13)(B), redesignated pars. (2) to (4) as (1) to (3), respectively, and struck out former par. (1) “Investment tax credit” which read as follows: “For purposes of this subtitle, any listed property shall not be treated as section 38 property for any taxable year unless such property is predominantly used in a qualified business use for such taxable year.” Subsec. (c)(1). Pub. L. 101–508, § 11813(b)(13)(C), struck out “credits and” after “Lessor’s” in heading. Subsec. (d)(3)(A). Pub. L. 101–508, § 11813(b)(13)(D), struck out “the amount of any credit allowable under section 38 to the employee or” after “of determining”. 1989—Subsec. (d)(4)(A)(v), (vi). Pub. L. 101–239 added cl. (v) and redesignated former cl. (v) as (vi). 1988—Subsec. (b)(3)(B)(i). Pub. L. 100–647, § 1018(u)(3), substituted “depreciation deductions” for “recovery deductions”. Subsec. (d)(1). Pub. L. 100–647, § 1002(b)(2), substituted “subsections (a) and (b), and the limitation of paragraph (3) of this subsection,” for “subsections (a) and (b)”. Subsec. (d)(3)(A). Pub. L. 100–647, § 1002(a)(10), substituted “depreciation deduction” for “recovery deduction”. 1986—Subsec. (a)(2)(A). Pub. L. 99–514, § 201(d)(4)(A)(i), (K), substituted “depreciation deduction” for “recovery deduction” in introductory provisions and substituted cls. (i) to (iv) for former cls. (i) and (ii) which read as follows: “(i) $3,200 for the first taxable year in the recovery period, and “(ii) $4,800 for each succeeding taxable year in the recovery period.” Subsec. (a)(2)(B). Pub. L. 99–514, § 201(d)(4)(A)(ii), (K), substituted “$1,475” for “$4,800” in heading and text of cl. (ii), and “depreciation deduction” for “recovery deduction” in heading and text of cl. (iv). Subsec. (a)(3)(B). Pub. L. 99–514, § 201(d)(4)(K), substituted “depreciation deduction” for “recovery deduction” in two places. Subsec. (b)(2). Pub. L. 99–514, § 201(d)(4)(J), substituted “section 168(g) (relating to alternative depreciation system)” for “the straight line method over the earnings and profits life for such property”. Subsec. (b)(3)(A). Pub. L. 99–514, § 201(d)(4)(B), (K), substituted “depreciation deduction” for “recovery deduction” and “section 168(g) (relating to alternative depreciation system)” for “the straight line method over the earnings and profits life” in closing provisions. Subsec. (b)(4). Pub. L. 99–514, § 201(d)(4)(C), in amending par. (4) generally, struck out heading “Definitions”, redesignated as par. (4) former subpar. (A) heading and text, substituted “For purposes of this section, property” for “Property”, and struck out former subpar. (B) definition of straight line method over earnings and profits life. Subsec. (c)(4). Pub. L. 99–514, § 201(d)(4)(D), substituted “section 168(i)(3)(A)” for “section 168(j)(6)(B)”. Subsec. (d)(1). Pub. L. 99–514, § 201(d)(4)(E), substituted “depreciation deduction” for “recovery deduction”. Subsec. (d)(2). Pub. L. 99–514, § 1812(e)(5), substituted “is use described in” for “is not use described in”. Pub. L. 99–514, § 201(d)(4)(F), substituted “depreciation deduction” for “recovery deduction” and “use in a trade or business (including the holding for the production of income)” for “use described in section 168(c)(1) (defining recovery property)”. Subsec. (d)(3)(A). Pub. L. 99–514, § 1812(e)(2), inserted “(or the amount of any deduction allowable to the employee for rentals or other payments under a lease of listed property)”. Subsec. (d)(4)(A)(iv). Pub. L. 99–514, § 201(d)(4)(G), substituted “section 168(i)(2)(B)” for “section 168(j)(5)(D)”. Subsec. (d)(4)(B). Pub. L. 99–514, § 1812(e)(3), inserted “and owned or leased by the person operating such establishment”. Subsec. (d)(4)(C). Pub. L. 99–514, § 1812(e)(4), added subpar. (C). Subsec. (d)(5)(A). Pub. L. 99–514, § 1812(e)(1)(A), (C), substituted “unloaded gross vehicle weight” for “gross vehicle weight” in cl. (ii) and inserted at end “In the case of a truck or van, clause (ii) shall be applied by substituting ‘gross vehicle weight’ for ‘unloaded gross vehicle weight’.” Subsec. (d)(8). Pub. L. 99–514, § 201(d)(4)(H), amended par. (8) generally. Prior to amendment, par. (8) read as follows: “For purposes of subsection (a)(2), the term ‘unrecovered basis’ means the excess (if any) of— “(A) the unadjusted basis (as defined in section 168(d)(1)(A)) of the passenger automobile, over “(B) the amount of the recovery deductions which would have been allowable for taxable years in the recovery period determined after the application of subsection (a) and as if all use during the recovery period were use described in section 168(c)(1).” Subsec. (d)(10). Pub. L. 99–514, § 201(d)(4)(I), struck out “, notwithstanding any

prescribed under section 168(f)(7),” after “For purposes of subsection (a)(2)”. 1985—Subsec. (a)(1). Pub. L. 99–44, § 4(a)(1), substituted “$675” for “$1,000”. Subsec. (a)(2)(A)(i). Pub. L. 99–44, § 4(a)(2)(A), substituted “$3,200” for “$4,000”. Subsec. (a)(2)(A)(ii), (B)(ii). Pub. L. 99–44, § 4(a)(2)(B), substituted “$4,800” for “$6,000” wherever appearing in text and heading. Subsec. (d)(7)(A). Pub. L. 99–44, § 4(b)(1), inserted “placed in service after 1988” after “passenger automobile”. Subsec. (d)(7)(B)(i). Pub. L. 99–44, § 4(b)(3), struck out last sentence which directed that in the case of calendar year 1984, the automobile price inflation adjustment would be zero. Subsec. (d)(7)(B)(i)(II). Pub. L. 99–44, § 4(b)(2), substituted “1987” for “1983”.

of 2017 AmendmentAmendment by section 11002(d)(8) of Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 11002(e) of Pub. L. 115–97, set out as a note under section 1 of this title. Pub. L. 115–97, title I, § 13202(c), Dec. 22, 2017, 131 Stat. 2109, provided that: “The

made by this section [amending this section] shall apply to property placed in service after December 31, 2017, in taxable years ending after such date.”

of 2014 AmendmentAmendment by section 221(a)(34)(E) of Pub. L. 113–295 effective Dec. 19, 2014, subject to a

, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.

of 2010 Amendment Pub. L. 111–240, title II, § 2043(b), Sept. 27, 2010, 124 Stat. 2560, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2009.”

of 2002 Amendment Pub. L. 107–147, title VI, § 602(c), Mar. 9, 2002, 116 Stat. 59, provided that: “The

made by this section [amending this section, section 30 of this title, and provisions set out as a note under this section] shall apply to property placed in service after December 31, 2001.”

of 1998 AmendmentAmendment by Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.

of 1997 Amendment Pub. L. 105–34, title IX, § 971(b), Aug. 5, 1997, 111 Stat. 897, as amended by Pub. L. 107–147, title VI, § 602(b)(2), Mar. 9, 2002, 116 Stat. 59, provided that: “The

made by this section [amending this section] shall apply to property placed in service after the date of enactment of this Act [Aug. 5, 1997].”

of 1996 AmendmentAmendment by Pub. L. 104–188 effective, except as otherwise expressly provided, as if included in the provision of the Revenue Reconciliation Act of 1990, Pub. L. 101–508, title XI, to which such amendment relates, see section 1702(i) of Pub. L. 104–188, set out as a note under section 38 of this title.

of 1990 AmendmentAmendment by Pub. L. 101–508 applicable to property placed in service after Dec. 31, 1990, but not applicable to any transition property (as defined in section 49(e) of this title), any property with respect to which qualified progress expenditures were previously taken into account under section 46(d) of this title, and any property described in section 46(b)(2)(C) of this title, as such sections were in effect on Nov. 4, 1990, see section 11813(c) of Pub. L. 101–508, set out as a note under section 45K of this title.

of 1989 Amendment Pub. L. 101–239, title VII, § 7643(b), Dec. 19, 1989, 103 Stat. 2381, provided that: “The amendment made by subsection (a) [amending this section] shall apply to property placed in service or leased in taxable years beginning after December 31, 1989.”

of 1988 AmendmentAmendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.

of 1986 AmendmentAmendment by section 201(d)(4) of Pub. L. 99–514 applicable to property placed in service after Dec. 31, 1986, in taxable years ending after such date, with exceptions, see section 203 and 204 of Pub. L. 99–514, set out as a note under section 168 of this title. Amendment by section 201(d)(4) of Pub. L. 99–514 not applicable to any property placed in service before Jan. 1, 1994, if such property placed in service as part of specified rehabilitations, and not applicable to certain additional rehabilitations, see section 251(d)(2), (3) of Pub. L. 99–514, set out as a note under section 46 of this title. Amendment by section 1812(e)(1)(A), (C), (2)–(5) of Pub. L. 99–514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99–514, set out as a note under section 48 of this title.

of 1985 Amendment Pub. L. 99–44, § 6(e), May 24, 1985, 99 Stat. 79, provided that: “(1) Except as provided in paragraph (2), the

Pub. L. 98–369, div. A, title I, § 179(d), July 18, 1984, 98 Stat. 719, provided that: “(1) In general.—“(A) Except as provided in subparagraph (B), the

made by subsections (a) and (c) shall not apply to any property—“(i) acquired by the taxpayer pursuant to a binding contract in effect on June 18, 1984, and at all times thereafter (or under

made by subsection (b) [amending section 274, 6653, and 6695 of this title] shall apply to taxable years beginning after December 31, 1984.”

For provisions that nothing in amendment by Pub. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending after Nov. 5, 1990, see section 11821(b) of Pub. L. 101–508, set out as a note under section 45K of this title. Plan

Not Required Until January 1, 1989For provisions directing that if any

made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title. Inflation Adjusted Items for Certain YearsProvisions relating to inflation adjustment of items in this section for certain years were contained in the following: 2024—Revenue Procedure 2024–13. 2023—Revenue Procedure 2023–14. 2022—Revenue Procedure 2022–17. 2021—Revenue Procedure 2021–31. 2020—Revenue Procedure 2020–37. 2019—Revenue Procedure 2019–26. 2018—Revenue Procedure 2018–25. 2017—Revenue Procedure 2017–29. 2016—Revenue Procedure 2016–23. 2015—Revenue Procedure 2015–19. 2014—Revenue Procedure 2014–21. 2013—Revenue Procedure 2013–21. 2012—Revenue Procedure 2012–23. 2011—Revenue Procedure 2011–21. 2010—Revenue Procedure 2010–18. 2009—Revenue Procedure 2009–24. 2008—Revenue Procedure 2008–22. 2007—Revenue Procedure 2007–30. 2006—Revenue Procedure 2006–18. 2005—Revenue Procedure 2005–13. 2004—Revenue Procedure 2004–20. 2003—Revenue Procedure 2003–75. 2002—Revenue Procedure 2002–14. 2001—Revenue Procedure 2001–19. 2000—Revenue Procedure 2000–18. 1999—Revenue Procedure 99–14. 1998—Revenue Procedures 98–24 and 98–30. 1997—Revenue Procedure 97–20. 1996—Revenue Procedure 96–25.