Modified Accelerated Cost Recovery System (MACRS), Listed Property, Limitation on Depreciation of Luxury Automobiles (LO 8.2, 8.4, 8.5) On September 14, 2022, Jay purchased a passenger automobile that is used 75 percent in his business. The automobile has a basis for depreciation purposes of $48,000, 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 2022 assuming bonus depreciation. X ANNUAL AUTOMOBILE DEPRECIATION LIMITATIONS Year of Use Year 1 Year 2 Year 3 Year 4 (and subsequent years until fully depreciated) 2022 Limits $19,200* 18,000 10,800 6,460 *Additional bonus depreciation of $8,000 is included in this amount. If bonus is elected out of, the limit is $11,200. 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 4.461 222 19 4.462 20 21 4.461 2.231 *Switch to straight-line depreciation