On February 4, 2022, Jackie purchased and placed in service a car she purchased for $21,200. The car was used exclusively for her business. (Use Table 6A-1 and Luxury Automobile Depreciation)

Required:

Compute Jackies cost recovery deduction in 2022 assuming no 179 expense but the bonus was taken.

In addition to the business use limitation, the amount of depreciation allowed for luxury automobiles is limited. Passenger autos are defined as four-wheeled vehicles made primarily for use on public itreets, roads, and highways with a gross vehicle weight of less than 6,000 pounds. 31 Light trucks do not have a separate limit as they have had in the past. 32 The depreciation expense limits for luxury atos and light trucks placed in service in tax year 2022 follow: Half-Year Convention * May not be used for farm business property generally placed in service after 1988. See Table 14, Rev. Proc. 87-57, 1987-2 CB 687