8-10 Modified Accelerated Cost Recovery System (MACRS), Listed Property, Limitation on Depreciation of Luxury Automobiles (LO 8.2, 8.4, 8.5) On September 14, 2021, Jay purchased a passenger automobile that is used 75 percent in his business. The automobile has a basis for depreciation purposes of $45,000, and Jay uses the accelerated method under MACRS. Jay does not elect to expense under section 179. Click here to access the depreciation table and click here to access the annual automobile depreciation limitations. Calculate Jay's depreciation deduction for 2021 assuming bonus depreciation. 18,200 X TABLE 8.2 ACCELERATED DEPRECIATION FOR PERSONAL PROPERTY ASSUMING HALF-YEAR CONVENTION (FOR PROPERTY PLACED IN SERVICE AFTER DECEMBER 31, 1986) Recovery Year 3-Year (200% DB) 5-Year (200% DB) 7-Year (200% DB) 10-Year 15-Year (200% DB) (150% DB) 20-Year (150% DB) 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81* 19.20 17.49 14.40 8.55 6.677 4 7.41 11.52 * 12.49 11.52 7.70 6.177 5 11.52 8.93 * 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 * 5.90 4.888 8 4.46 6.55 5.90 4.522 9 6.56 5.91 4.462 * 10 6.55 5.90 4.461 11 3.28 5.91 4.462 12 5.90 4.461 13 5.91 4.462 14 5.90 4.461 15 5.91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 21 2.231 Year of Use Year 1 Year 2 Year 3 ANNUAL AUTOMOBILE DEPRECIATION LIMITATIONS 2021 Limits $18,200* Year 4 (and subsequent years until fully depreciated) *Additional bonus depreciation of $8,000 is included in this amount. 16,400 9,800 5,860