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.

Calculate Jay's depreciation deduction for 2021 assuming bonus depreciation.

ANNUAL AUTOMOBILE DEPRECIATION LIMITATIONS

Year of use	2021 Limits
Year 1	$18,200
Year 2	16,400

*Additional bonus depreciation of $8,000 is included in this amount.