Source: https://www.scribd.com/document/536641/US-Internal-Revenue-Service-rp-03-75
Timestamp: 2018-06-24 15:07:27
Document Index: 398582734

Matched Legal Cases: ['§ 61', '§ 1', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 280', '§ 280', '§ 1', '§ 280', '§ 280', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 280', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§\n168', '§ 280', '§ 168', '§ 168', '§ 168', '§ 168', '§ 280', '§ 1', '§ 168', '§ 168', '§ 1', '§ 1', '§ 1', '§ 280', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 1', '§ 1', '§ 1', '§ 1', '§ 1', '§ 168', '§ 280', '§ 280', '§ 280', '§ 280', '§ 280', '§ 280', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 1', '§ 1', '§ 280', '§ 1', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168', '§ 168']

US Internal Revenue Service: rp-03-75 | Tax Deduction | Consumer Price Index
105: Examination of returns and claims for refund, credit, or abatement; determination of correct tax liability. (Also Part I, §§ 61, 168, 280F; 1.61-21, 1.280F-7.) Rev. Proc. 2003-75 SECTION 1. PURPOSE 01. This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2003, including special tables of limitations on depreciation deductions for trucks and vans, and for passenger automobiles designed to be propelled primarily by electricity and built by an original equipment manufacturer (electric automobiles); (2) the amounts to be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2003, including a separate table of inclusion amounts for lessees of trucks and vans, and a separate table for lessees of electric automobiles; and (3) the maximum allowable value of employer-provided passenger automobiles first made available to employees for personal use in calendar year 2003 for which the vehicle cents-per-mile valuation rule provided under § 1.61-21(e) of the Income Tax Regulations may be applicable. 02. This revenue procedure also provides: (1) tables of dollar limitations on depreciation deductions for owners of passenger automobiles to which the additional 30 percent first-year allowance for depreciation available under § 168(k)(1)(A) applies, including special tables of limitations on depreciation deductions for qualifying trucks and vans and for qualifying electric automobiles; (2) tables of dollar limitations on depreciation deductions for owners of passenger automobiles to which the additional 50 percent first-year allowance for depreciation available under § 168(k)(4) applies, including special tables of limitations on depreciation deductions for qualifying trucks and vans and for qualifying electric automobiles; and (3) revised tables of dollar limitations for passenger automobiles and electric automobiles that were placed in service by the taxpayer during 2001 and 2002 and to which the additional 30 percent first-year allowance for depreciation available under § 168(k)(1)(A) applies. For purposes of these tables, the additional 30 percent or 50 percent first-year allowance does not apply if the taxpayer has elected under § 168(k)(2)(C)(iii) not to take the additional allowance. Similarly, the additional 50 percent first-year allowance does not apply if the taxpayer has elected under § 168(k)(4)(E) to take the additional 30 percent allowance instead of the additional 50 percent allowance. 03. The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7). The
maximum allowable passenger automobile value for applying the vehicle cents-per-mile valuation rule reflects the automobile price inflation adjustment of § 280F(d)(7) of the Internal Revenue Code, as required by § 1.61-21(e)(1)(iii)(A). SECTION 2. BACKGROUND 01. For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year that the passenger automobile is placed in service by the taxpayer and each succeeding year. In the case of electric automobiles placed in service after August 5, 1997, and before January 1, 2005, § 280F(a)(1)(C) requires tripling of these limitation amounts. Section 280F(d)(7) requires the amounts allowable as depreciation deductions to be increased by a price inflation adjustment amount for passenger automobiles placed in service after 1988. The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI "automobile component" (the "new trucks" component) than that used in the price inflation amount calculation for other passenger automobiles (the "new cars" component), resulting in somewhat higher depreciation deductions for trucks and vans. This change reflects the higher rate of price inflation that trucks and vans have been subject to since 1988. For purposes of this revenue procedure, the term "trucks and vans" refers to passenger automobiles that are built on a truck chassis, including minivans and sport utility vehicles (SUVs) that are built on a truck chassis. 02. Section 101 of the Job Creation and Worker Assistance Act of 2002, Pub. L. No. 107-147, 116 Stat. 21 (March 9, 2002) added § 168(k) to the Code. Generally, § 168(k)(1)(A) provides an additional 30 percent first-year depreciation deduction for new property acquired by the taxpayer after September 10, 2001, and before September 11, 2004 (subsequently extended to January 1, 2005), so long as no written binding contract for the acquisition of the property existed prior to September 11, 2001. In the case of a passenger automobile to which the 30 percent additional allowance applies (other than a § 168(k)(4) passenger automobile described in section 2.03 of this revenue procedure, or a passenger automobile for which a taxpayer has made an election under § 168(k)(2)(C)(iii)), § 168(k)(2)(E) increases the first-year depreciation allowed under § 280F(a)(1)(A) by $4,600. For purposes of this revenue procedure, a passenger automobile to which the additional 30 percent first-year allowance under § 168(k)(1)(A) applies (other than a § 168(k)(4) passenger automobile described in section 2.03 of this revenue procedure, or a passenger automobile for which a taxpayer has made an election under § 168(k)(2)(C)(iii)) is referred to as a "§ 168(k)(1) passenger automobile". 03. Section 201 of the Jobs and Growth Tax Relief Reconciliation Act of 2003, Pub. L. No. 108-27, 117 Stat. 752 (May 28, 2003) added § 168(k)(4) to the Code. Section 168(k)(4)(A)(i) provides that § 168(k)(1) is applied by substituting "50 percent" for "30 percent" for new property acquired by the taxpayer after May 5, 2003, and before January 1, 2005, so long as no written binding contract for the acquisition of the property existed prior to May 6, 2003. In the case of a passenger automobile to which the 50 percent additional allowance applies (or would apply but for an election under § 168(k)(4)(E)) and for which no election has been made under § 168(k)(2)(C)(iii), §
168(k)(4)(D) increases the first-year depreciation allowed under § 280F(a)(1)(A) by $7,650. For purposes of this revenue procedure, a passenger automobile to which the additional 50 percent first-year allowance under § 168(k)(4) applies (or would apply but for an election under § 168(k)(4)(E)) and for which no election has been made under § 168(k)(2)(C)(iii) is referred to as a "§ 168(k)(4) passenger automobile". 04. For leased passenger automobiles, § 280F(c) requires a reduction in the deduction allowed to the lessee of the passenger automobile. The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. Under § 1.280F-7(a), this reduction requires the lessees to include in gross income an inclusion amount determined by applying a formula to the amount obtained from a table. There is a table for lessees of electric automobiles, a table for lessees of trucks and vans, and a table for all other passenger automobiles. Each table shows inclusion amounts for a range of fair market values for each tax year after the passenger automobile is first leased. These tables should also be used by lessees of § 168(k)(1) passenger automobiles and § 168(k)(4) passenger automobiles. 05. For passenger automobiles (including trucks, vans, and electric automobiles) first provided by employers to employees that meet the requirements of § 1.61-21(e)(1), the value to the employee of the use of the passenger automobile may be determined under the vehicle cents-per-mile valuation rule of § 1.61-21(e). Section 1.6121(e)(1)(iii)(A) provides that for a passenger automobile first made available after 1988 to any employee of the employer for personal use, the value of the use of the passenger automobile may not be determined under the vehicle cents-per-mile valuation rule for a calendar year if the fair market value of the passenger automobile (determined pursuant to § 1.61-21(d)(5)(i) through (iv)) on the first date the passenger automobile is made available to the employee exceeds $12,800 as adjusted by § 280F(d)(7). SECTION 3. SCOPE AND OBJECTIVE 01. The limitations on depreciation deductions in section 4.02(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2003, and continue to apply for each tax year that the passenger automobile remains in service. 02. The tables in section 4.03 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2003. Lessees of such passenger automobiles must use these tables to determine the inclusion amount for each tax year during which the passenger automobile is leased. See Rev. Proc. 2002-14, 20021 C.B. 450, for passenger automobiles first leased before January 1, 2003. 03. The maximum fair market value figure in section 4.04(2) of this revenue procedure applies to employer-provided passenger automobiles first made available to any employee for personal use in calendar year 2003. See Rev. Proc. 2002-14 for the maximum fair market value figure for passenger automobiles first made available before January 1, 2003.
04. The revised limitations on depreciation deductions in section 4.05(2) of this revenue procedure apply to § 168(k)(1) passenger automobiles placed in service by the taxpayer during 2001 and 2002. The tables in section 4.05(2) of this revenue procedure amplify both Rev. Proc. 2001-19, 2001-1 C.B. 732, and Rev. Proc 2002-14 by providing tables for § 168(k)(1) passenger automobiles to which those revenue procedures apply. SECTION 4. APPLICATION 01. In General. (1) Limitations on Depreciation Deductions for Certain Automobiles. The limitations on depreciation deductions for passenger automobiles placed in service by the taxpayer for the first time during calendar year 2003 are found in Tables 1 through 9 in section 4.02(2) of this revenue procedure. Table 1 of this revenue procedure provides limitations on depreciation deductions for a passenger automobile (other than a truck, van, electric automobile, § 168(k)(1) passenger automobile, or § 168(k)(4) passenger automobile). Table 2 of this revenue procedure provides limitations on depreciation deductions for a § 168(k)(1) passenger automobile (other than a truck, van, or electric automobile). Table 3 of this revenue procedure provides limitations on depreciation deductions for a § 168(k)(4) passenger automobile (other than a truck, van, or electric automobile). Table 4 of this revenue procedure provides limitations on depreciation deductions for a truck or van (other than a § 168(k)(1) passenger automobile or § 168(k)(4) passenger automobile). Table 5 of this revenue procedure provides limitations on depreciation deductions for a truck or van that is a § 168(k)(1) passenger automobile. Table 6 of this revenue procedure provides limitations on depreciation deductions for a truck or van that is a § 168(k)(4) passenger automobile. Table 7 of this revenue procedure provides limitations on depreciation deductions for an electric automobile (other than a § 168(k)(1) passenger automobile or § 168(k)(4) passenger automobile). Table 8 of this revenue procedure provides limitations on depreciation deductions for an electric automobile that is a § 168(k)(1) passenger automobile. Table 9 of this revenue procedure provides limitations on depreciation deductions for an electric automobile that is a § 168(k)(4) passenger automobile. (2) Inclusions in Income of Lessees of Passenger Automobiles. A taxpayer first leasing a passenger automobile during calendar year 2003 must determine the inclusion amount that is added to gross income using the tables in section 4.03 of this revenue procedure. The inclusion amount is determined using Table 10 in the case of a passenger automobile (other than a truck, van, or electric automobile), Table 11 in the case of a truck or van, and Table 12 in the case of an electric automobile. In addition, the procedures of § 1.280F-7(a) must be followed. (3) Maximum Automobile Value for Using the Cents-per-mile Valuation Rule. An employer providing a passenger automobile for the first time in calendar year 2003 for the personal use of any employee may determine the value of the use of the passenger automobile by using the cents-per-mile valuation rule in § 1.61-21(e) if the fair
market value of the passenger automobile does not exceed the amount specified in section 4.04(2) of this revenue procedure. If the fair market value of the passenger automobile exceeds the amount specified in section 4.04(2) of this revenue procedure, the employer may determine the value of the use of the passenger automobile under the general valuation rules of § 1.61-21(b) or under the special valuation rules of § 1.6121(d) (Automobile lease valuation) or § 1.61-21(f) (Commuting valuation) if the applicable requirements are met. (4) Limitations on Depreciation Deductions for Certain Passenger Automobiles Placed in Service in 2001 or 2002. Depreciation deductions with respect to § 168(k)(1) passenger automobiles placed in service during calendar year 2001 or 2002 are limited to the amounts set forth in Tables 13 through 16 of section 4.05(2) of this revenue procedure. 02. Limitations on Depreciation Deductions for Certain Automobiles. (1) Amount of the Inflation Adjustment. 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. 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 CPI). The new car component of the CPI was 115.2 for October 1987 and 136.7 for October 2002. The October 2002 index exceeded the October 1987 index by 21.5. The Service has, therefore, determined that the automobile price inflation adjustment for 2003 for passenger automobiles (other than trucks and vans) is 18.66 percent (21.5/115.2 x 100%). This adjustment is applicable to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2003. The dollar limitations in § 280F(a) must therefore be multiplied by a factor of 0.1866, 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, vans, and electric automobiles) for calendar year 2003. To determine the dollar limitations applicable to an electric automobile first placed in service during calendar year 2003, the dollar limitations in § 280F(a) are tripled in accordance with § 280F(a)(1)(C) and are then multiplied by a factor of 0.1866; the resulting increases, after rounding to the nearest $100, are added to the tripled 1988 limitations to give the depreciation limitations for calendar year 2003. To determine the dollar limitations applicable to trucks and vans first placed in service during calendar year 2003, 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 147.5 for October 2002. The October 2002 index exceeded the October 1987 index by 35.1. The Service has, therefore, determined that the automobile price inflation adjustment for 2003 for trucks and vans is 31.23 percent (35.1/112.4 x 100%). This adjustment is applicable to all trucks and vans that are first placed in service in calendar year 2003. The dollar limitations in § 280F(a) must therefore be multiplied by a factor of 0.3123, and the
resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to trucks and vans. (2) Amount of the Limitation. For passenger automobiles placed in service by the taxpayer in calendar year 2003, Tables 1 through 9 contain the dollar amount of the depreciation limitation for each tax year. Use Table 1 for passenger automobiles (other than trucks, vans, electric automobiles, § 168(k)(1) passenger automobiles, and § 168(k)(4) passenger automobiles) placed in service by the taxpayer in calendar year 2003. Use Table 2 for § 168(k)(1) passenger automobiles (other than trucks, vans, and electric automobiles) placed in service by the taxpayer in calendar year 2003. Use Table 3 for § 168(k)(4) passenger automobiles (other than trucks, vans, and electric automobiles) placed in service by the taxpayer in calendar year 2003. Use Table 4 for trucks and vans (other than § 168(k)(1) passenger automobiles and § 168(k)(4) passenger automobiles) placed in service by the taxpayer in calendar year 2003. Use Table 5 for trucks or vans that are § 168(k)(1) passenger automobiles placed in service by the taxpayer in calendar year 2003. Use Table 6 for trucks or vans that are § 168(k)(4) passenger automobiles placed in service by the taxpayer in calendar year 2003. Use Table 7 for electric automobiles (other than § 168(k)(1) passenger automobiles and § 168(k)(4) passenger automobiles) placed in service by the taxpayer in calendar year 2003. Use Table 8 for electric automobiles that are § 168(k)(1) passenger automobiles placed in service by the taxpayer in calendar year 2003. Use Table 9 for electric automobiles that are § 168(k)(4) passenger automobiles placed in service by the taxpayer in calendar year 2003. REV. PROC. 2003-75 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT § 168(k)(1) PASSENGER AUTOMOBILES, § 168(k)(4) PASSENGER AUTOMOBILES, TRUCKS, VANS, OR ELECTRIC AUTOMOBILES) PLACED IN SERVICE BY THE TAXPAYER DURING CALENDAR YEAR 2003 Tax Year 1st Tax Year 2nd Tax Year 3rd Tax Year Each Succeeding Year Amount $3,060 $4,900 $2,950 $1,775
REV. PROC. 2003-75 TABLE 2 DEPRECIATION LIMITATIONS FOR § 168(k)(1) PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS, VANS, OR ELECTRIC AUTOMOBILES) PLACED IN SERVICE BY THE TAXPAYER DURING CALENDAR YEAR 2003 Tax Year 1st Tax Year Amount $7,660
2nd Tax Year 3rd Tax Year Each Succeeding Year
$4,900 $2,950 $1,775
REV. PROC. 2003-75 TABLE 3 DEPRECIATION LIMITATIONS FOR § 168(k)(4) PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS, VANS, OR ELECTRIC AUTOMOBILES) PLACED IN SERVICE BY THE TAXPAYER DURING CALENDAR YEAR 2003 Tax Year 1st Tax Year 2nd Tax Year 3rd Tax Year Each Succeeding Year Amount $10,710 $ 4,900 $ 2,950 $ 1,775
REV. PROC. 2003-75 TABLE 4 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS (THAT ARE NOT § 168(k)(1) PASSENGER AUTOMOBILES OR § 168(k)(4) PASSENGER AUTOMOBILES) PLACED IN SERVICE BY THE TAXPAYER DURING CALENDAR YEAR 2003 Tax Year 1st Tax Year 2nd Tax Year 3rd Tax Year Each Succeeding Year Amount $3,360 $5,400 $3,250 $1,975
REV. PROC. 2003-75 TABLE 5 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS THAT ARE § 168(k)(1) PASSENGER AUTOMOBILES PLACED IN SERVICE BY THE TAXPAYER DURING CALENDAR YEAR 2003 Tax Year 1st Tax Year 2nd Tax Year 3rd Tax Year Each Succeeding Year Amount $7,960 $5,400 $3,250 $1,975
REV. PROC. 2003-75 TABLE 6 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS THAT ARE § 168(k)(4) PASSENGER AUTOMOBILES PLACED IN SERVICE BY THE TAXPAYER DURING CALENDAR YEAR 2003 Tax Year 1st Tax Year 2nd Tax Year 3rd Tax Year Each Succeeding Year Amount $11,010 $ 5,400 $ 3,250 $ 1,975
REV. PROC. 2003-75 TABLE 7 DEPRECIATION LIMITATIONS FOR ELECTRIC AUTOMOBILES (THAT ARE NOT § 168(k)(1) PASSENGER AUTOMOBILES OR § 168(k)(4) PASSENGER AUTOMOBILES) PLACED IN SERVICE BY THE TAXPAYER DURING CALENDAR YEAR 2003 Tax Year 1st Tax Year 2nd Tax Year 3rd Tax Year Each Succeeding Year Amount $9,080 $14,600 $8,750 $5,225
REV. PROC. 2003-75 TABLE 8 DEPRECIATION LIMITATIONS FOR ELECTRIC AUTOMOBILES THAT ARE § 168(k)(1) PASSENGER AUTOMOBILES PLACED IN SERVICE BY THE TAXPAYER DURING CALENDAR YEAR 2003 Tax Year 1st Tax Year 2nd Tax Year 3rd Tax Year Each Succeeding Year Amount $22,880 $14,600 $8,750 $5,225
REV. PROC. 2003-75 TABLE 9 DEPRECIATION LIMITATIONS FOR ELECTRIC AUTOMOBILES THAT ARE § 168(k)(4) PASSENGER AUTOMOBILES PLACED IN SERVICE BY THE TAXPAYER DURING CALENDAR YEAR 2003 Tax Year 1st Tax Year 2nd Tax Year 3rd Tax Year Amount $32,030 $14,600 $8,750
03. Inclusions in Income of Lessees of Passenger Automobiles. The inclusion amounts for passenger automobiles (including § 168(k)(1) passenger automobiles and § 168(k)(4) passenger automobiles) first leased in calendar year 2003 are calculated under the procedures described in § 1.280F-7(a). Lessees of passenger automobiles other than trucks, vans, and electric automobiles should use Table 10 of this revenue procedure in applying these procedures, while lessees of trucks and vans should use Table 11 of this revenue procedure and lessees of electric automobiles should use Table 12 of this revenue procedure.
REV. PROC. 2003-75 TABLE 10 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS, VANS, OR ELECTRIC AUTOMOBILES) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2003 Fair Market Value Tax Year During Lease of Passenger Automobile 1st 2nd 3rd 4th 5th and Later Over Not Over $18,000 18,500 19,000 19,500 20,000 20,500 21,000 21,500 22,000 23,000 24,000 25,000 26,000 27,000 28,000 29,000 30,000 31,000 32,000 33,000 34,000 35,000 36,000 37,000 38,000 39,000 40,000 41,000 42,000 43,000 44,000 45,000 46,000 47,000 48,000 49,000 18,500 19,000 19,500 20,000 20,500 21,000 21,500 22,000 23,000 24,000 25,000 26,000 27,000 28,000 29,000 30,000 31,000 32,000 33,000 34,000 35,000 36,000 37,000 38,000 39,000 40,000 41,000 42,000 43,000 44,000 45,000 46,000 47,000 48,000 49,000 50,000 10 12 14 15 17 19 21 22 25 28 32 35 39 42 46 49 52 56 59 63 66 70 73 77 80 83 87 90 94 97 101 104 108 111 115 118 22 26 30 34 37 41 45 49 54 62 70 77 85 92 100 108 115 123 130 138 146 153 161 168 176 184 191 199 206 214 221 229 236 244 251 259 33 39 44 50 56 61 66 72 81 92 103 115 125 137 148 159 171 182 194 204 215 227 238 249 260 272 283 294 306 317 328 339 351 362 374 385 40 46 53 59 66 73 80 87 97 110 123 137 151 165 178 191 205 218 231 245 259 272 285 299 313 326 340 353 366 380 394 407 420 434 447 460 45 53 61 69 77 85 92 100 111 127 143 158 174 189 204 221 236 251 267 283 298 314 330 346 361 376 391 407 423 438 454 470 486 501 516 532
REV. PROC. 2003-75 TABLE 10 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS, VANS, OR ELECTRIC AUTOMOBILES) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2003
Fair Market Value of Passenger Automobile Over 50,000 51,000 52,000 53,000 54,000 55,000 56,000 57,000 58,000 59,000 60,000 62,000 64,000 66,000 68,000 70,000 72,000 74,000 76,000 78,000 80,000 85,000 90,000 95,000 100,000 110,000 120,000 130,000 140,000 150,000 160,000 170,000 180,000 190,000 200,000 210,000 220,000 230,000 240,000 Not Over 51,000 52,000 53,000 54,000 55,000 56,000 57,000 58,000 59,000 60,000 62,000 64,000 66,000 68,000 70,000 72,000 74,000 76,000 78,000 80,000 85,000 90,000 95,000 100,000 110,000 120,000 130,000 140,000 150,000 160,000 170,000 180,000 190,000 200,000 210,000 220,000 230,000 240,000 250,000
Tax Year During Lease 1st 121 125 128 132 135 139 142 146 149 152 158 165 171 178 185 192 199 206 213 220 232 249 266 284 309 344 378 413 447 482 516 551 585 620 654 689 723 758 792 2nd 267 274 282 289 297 304 312 320 327 335 346 361 377 392 407 422 437 452 467 483 509 547 585 623 680 755 831 907 983 1,059 1,135 1,210 1,286 1,362 1,438 1,513 1,589 1,665 1,741 3rd 396 407 418 430 441 452 463 474 486 497 514 537 559 581 604 626 649 672 694 716 756 812 868 924 1,009 1,122 1,234 1,346 1,459 1,571 1,683 1,796 1,909 2,021 2,133 2,246 2,359 2,471 2,583 4th 474 488 502 515 528 542 556 569 582 596 616 642 670 697 724 751 778 804 832 859 906 973 1,041 1,108 1,209 1,344 1,479 1,614 1,749 1,884 2,019 2,154 2,288 2,423 2,559 2,694 2,828 2,963 3,098 5th and Later 548 563 578 594 610 626 641 656 672 688 711 743 773 805 835 867 898 930 960 991 1,046 1,124 1,202 1,280 1,397 1,552 1,708 1,864 2,019 2,175 2,331 2,487 2,643 2,798 2,953 3,109 3,265 3,421 3,577
REV. PROC. 2003-75 TABLE 11 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2003 Fair Market Value of Truck or Van Over $18,500 19,000 19,500 20,000 20,500 21,000 21,500 22,000 23,000 24,000 25,000 26,000 27,000 28,000 29,000 30,000 31,000 32,000 33,000 34,000 35,000 36,000 37,000 38,000 39,000 40,000 41,000 42,000 43,000 44,000 45,000 46,000 47,000 48,000 49,000 Not Over 19,000 19,500 20,000 20,500 21,000 21,500 22,000 23,000 24,000 25,000 26,000 27,000 28,000 29,000 30,000 31,000 32,000 33,000 34,000 35,000 36,000 37,000 38,000 39,000 40,000 41,000 42,000 43,000 44,000 45,000 46,000 47,000 48,000 49,000 50,000 7 8 10 12 14 15 17 20 23 27 30 33 37 40 44 47 51 54 58 61 65 68 71 75 78 82 85 89 92 96 99 102 106 109 113 14 18 22 26 29 34 37 43 51 58 66 73 81 89 96 104 111 119 126 134 141 149 157 164 172 179 187 194 202 209 217 225 232 240 247 22 27 33 38 44 49 55 63 74 86 97 109 119 130 142 153 165 176 187 198 210 221 232 243 254 266 277 289 300 311 322 333 345 356 368 24 32 38 45 52 59 66 76 89 102 116 129 143 157 170 183 196 210 224 238 251 264 278 292 305 318 332 345 358 373 386 400 413 426 439 29 36 44 52 60 67 75 86 102 118 133 149 165 180 196 212 227 242 258 273 289 305 320 336 352 367 383 398 414 429 445 460 476 492 507 Tax Year During Lease 1st 2nd 3rd 4th 5th and Later
REV. PROC. 2003-75 TABLE 11 Dollar Amounts For Trucks And Vans With A Lease Term Beginning In Calendar Year 2003
Fair Market Value of Truck or Van Over 50,000 51,000 52,000 53,000 54,000 55,000 56,000 57,000 58,000 59,000 60,000 62,000 64,000 66,000 68,000 70,000 72,000 74,000 76,000 78,000 80,000 85,000 90,000 95,000 100,000 110,000 120,000 130,000 140,000 150,000 160,000 170,000 180,000 190,000 200,000 210,000 220,000 230,000 240,000 Not Over 51,000 52,000 53,000 54,000 55,000 56,000 57,000 58,000 59,000 60,000 62,000 64,000 66,000 68,000 70,000 72,000 74,000 76,000 78,000 80,000 85,000 90,000 95,000 100,000 110,000 120,000 130,000 140,000 150,000 160,000 170,000 180,000 190,000 200,000 210,000 220,000 230,000 240,000 250,000
Tax Year During Lease 1st 116 120 123 127 130 134 137 140 144 147 152 159 166 173 180 187 194 201 208 215 227 244 261 278 304 339 373 408 442 477 511 546 580 615 649 684 718 753 787 2nd 255 263 270 278 285 293 301 308 316 323 335 350 365 380 395 410 426 441 456 471 497 535 573 611 668 744 820 895 971 1,047 1,123 1,198 1,274 1,350 1,426 1,502 1,578 1,653 1,729 3rd 379 389 401 412 424 434 445 457 468 480 496 519 542 564 587 609 631 654 676 699 739 795 851 907 992 1,104 1,216 1,329 1,442 1,554 1,666 1,779 1,892 2,004 2,116 2,228 2,341 2,454 2,566 4th 453 467 480 493 507 521 534 548 561 575 595 622 648 676 702 730 757 783 811 837 885 952 1,020 1,088 1,188 1,323 1,458 1,593 1,728 1,862 1,998 2,133 2,267 2,402 2,537 2,672 2,807 2,942 3,077 5th and Later 523 538 554 570 585 601 617 632 647 663 687 717 749 780 811 842 873 905 935 967 1,021 1,099 1,177 1,254 1,372 1,527 1,683 1,839 1,994 2,151 2,306 2,462 2,618 2,773 2,929 3,085 3,240 3,396 3,552
REV. PROC. 2003-75 TABLE 12 DOLLAR AMOUNTS FOR ELECTRIC AUTOMOBILES WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2003 Fair Market Value of Electric Automobile Over $53,000 54,000 55,000 56,000 57,000 58,000 59,000 60,000 62,000 64,000 66,000 68,000 70,000 72,000 74,000 76,000 78,000 80,000 85,000 90,000 95,000 100,000 110,000 120,000 130,000 140,000 150,000 160,000 170,000 180,000 190,000 200,000 210,000 220,000 230,000 240,000 Not Over 54,000 55,000 56,000 57,000 58,000 59,000 60,000 62,000 64,000 66,000 68,000 70,000 72,000 74,000 76,000 78,000 80,000 85,000 90,000 95,000 100,000 110,000 120,000 130,000 140,000 150,000 160,000 170,000 180,000 190,000 200,000 210,000 220,000 230,000 240,000 250,000 28 31 35 38 42 45 49 54 61 68 75 81 88 95 102 109 116 128 145 162 180 206 240 275 309 344 378 413 447 482 516 551 585 620 654 689 60 68 76 83 91 98 106 117 132 147 163 178 193 208 223 239 254 280 318 356 394 451 527 602 678 754 830 905 981 1,057 1,133 1,208 1,284 1,360 1,436 1,511 90 101 112 124 134 146 157 174 197 219 241 264 287 309 332 353 376 416 472 528 584 668 781 894 1,006 1,118 1,231 1,344 1,456 1,568 1,681 1,794 1,906 2,018 2,131 2,244 108 121 134 148 162 175 188 209 235 263 290 317 343 371 397 425 452 499 566 634 701 803 937 1,072 1,207 1,342 1,477 1,612 1,747 1,882 2,016 2,151 2,287 2,421 2,556 2,691 124 140 156 171 187 203 218 241 273 304 334 366 397 428 460 491 521 576 655 732 810 926 1,082 1,238 1,394 1,550 1,705 1,861 2,017 2,172 2,329 2,484 2,639 2,796 2,951 3,107 Tax Year During Lease 1st 2nd 3rd 4th 5th and Later
04. Maximum Automobile Value for Using the Cents-per-mile Valuation Rule. (1) Amount of Adjustment. Under § 1.61-21(e)(1)(iii)(A), the limitation on the fair market value of an employer-provided passenger automobile first made available to any employee for personal use after 1988 is to be adjusted in accordance with § 280F(d)(7). Accordingly, the 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. See, section 4.02(1) of this revenue procedure. The new car component of the CPI was 115.2 for October 1987 and 136.7 for October 2002. The October 2002 index exceeded the October 1987 index by 21.5. The Service has, therefore, determined that the adjustment for 2003 is 18.66 percent (21.5/115.2 x 100%). This adjustment is applicable to all employer-provided passenger automobiles first made available to any employee for personal use in calendar year 2003. The maximum fair market value specified in § 1.6121(e)(1)(iii)(A) must therefore be multiplied by a factor of 0.1866, and the resulting increase, after rounding to the nearest $100, is added to $12,800 to give the maximum value for calendar year 2003. (2) The Maximum Automobile Value. For passenger automobiles first made available in calendar year 2003 to any employee of the employer for personal use, the vehicle cents-per-mile valuation rule may be applicable if the fair market value of the passenger automobile on the date it is first made available does not exceed $15,200. .05 Revised Limitation Amounts for § 168(k)(1) Passenger Automobiles Placed in Service During 2001 and 2002. (1) Calculation of the Revised Amount. The revised depreciation limits provided in this section for § 168(k)(1) passenger automobiles (other than electric automobiles) were calculated by augmenting the existing limitations on the first year allowance in Rev. Proc. 2001-19 (for passenger automobiles placed in service in calendar year 2001) and in Rev. Proc. 2002-14 (for passenger automobiles placed in service in calendar year 2002) by $4,600. Similarly, the revised depreciation limits provided in this section for electric automobiles that are § 168(k)(1) passenger automobiles were calculated by augmenting the existing limitations on the first year allowance in Rev. Proc. 2001-19 (for electric automobiles placed in service in calendar year 2001) and in Rev. Proc. 2002-14 (for electric automobiles placed in service in calendar year 2002) by $13,800 ($4,600 tripled). (2) Amount of the Revised Limitation. For § 168(k)(1) passenger automobiles (other than electric automobiles) placed in service by the taxpayer in calendar year 2001, Table 13 of this revenue procedure contains the revised dollar amount of the depreciation limitations for each tax year. For electric automobiles that are § 168(k)(1) passenger automobiles placed in service by the taxpayer in calendar year 2001, Table 14 of this revenue procedure contains these revised amounts. For § 168(k)(1) passenger automobiles (other than electric automobiles) placed in service by the taxpayer in calendar year 2002, Table 15 of this revenue procedure contains the
revised dollar amount of the depreciation limitations for each tax year. For electric automobiles that are § 168(k)(1) passenger automobiles placed in service by the taxpayer in calendar year 2002, Table 16 of this revenue procedure contains these revised amounts. REV. PROC. 2003-75 TABLE 13 DEPRECIATION LIMITATIONS FOR § 168(k)(1) PASSENGER AUTOMOBILES (THAT ARE NOT ELECTRIC AUTOMOBILES) FIRST PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2001 Tax Year Amount $7,660 $4,900 $2,950 $1,775
1st Tax Year 2nd Tax Year 3rd Tax Year Each Succeeding Year
REV. PROC. 2003-75 TABLE 14 DEPRECIATION LIMITATIONS FOR ELECTRIC AUTOMOBILES THAT ARE § 168(k)(1) PASSENGER AUTOMOBILES FIRST PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2001 Tax Year 1st Tax Year 2nd Tax Year 3rd Tax Year Each Succeeding Year Amount $23,080 $14,800 $ 8,850 $ 5,325
REV. PROC. 2003-75 TABLE 15 DEPRECIATION LIMITATIONS FOR § 168(k)(1) PASSENGER AUTOMOBILES (THAT ARE NOT ELECTRIC AUTOMOBILES) FIRST PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2002 Tax Year 1st Tax Year 2nd Tax Year 3rd Tax Year Each Succeeding Year Amount $7,660 $4,900 $2,950 $1,775
REV. PROC. 2003-75 TABLE 16 DEPRECIATION LIMITATIONS FOR ELECTRIC AUTOMOBILES THAT ARE § 168(k)(1) PASSENGER AUTOMOBILES FIRST PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2002 Tax Year 1st Tax Year 2nd Tax Year 3rd Tax Year Each Succeeding Year Amount $22,980 $14,700 $ 8,750 $ 5,325
SECTION 5. EFFECTIVE DATE This revenue procedure, with the exception of section 4.05, applies to passenger automobiles (other than leased passenger automobiles) that are first placed in service by the taxpayer during calendar year 2003, to leased passenger automobiles that are first leased by the taxpayer during calendar year 2003, and to employer-provided passenger automobiles first made available to employees for personal use in calendar year 2003. Section 4.05 of this revenue procedure applies to § 168(k)(1) passenger automobiles that are placed in service by the taxpayer during calendar year 2001 or 2002. SECTION 6. EFFECT ON OTHER DOCUMENTS Rev. Proc. 2001-19 and Rev. Proc. 2002-14 are amplified. DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. Harvey of the Office of the Associate Chief Counsel (Passthroughs and Special Industries). For further information regarding the depreciation limitations and lessee inclusion amounts in this revenue procedure, contact Mr. Harvey at (202) 622-3110; for further information regarding the maximum automobile value for applying the vehicle cents-per-mile valuation rule, contact John B. Richards of the Office of the Associate Chief Counsel (Tax Exempt and Government Entities) at (202) 622-6040 (not toll-free calls).
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