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On February 4, 2021, Jackie purchased and placed in service a car she purchased for $21,500. The car was used exclusively for her business. (Use Table 6A-1 and Luxury Automobile Depreciation) Required: Compute Jackie's cost recovery deduction in 2021 assuming no 179 expense but the bonus was taken. Jackie's cost recovery deduction uz15e/Table6A 1.htm TABLE 6A-1 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line* Half-Year Convention Recovery Year 1 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 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 4461 18 4.462 19 4:461 201 2.231 21 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. Luxury Automobile Limitations In addition to the business use limitation, the amount of depreciation allowed for luxury automobiles is limbed. Passenger autos are defined as four-wheeled vehicles made primarily for use on public streets, roads, and highways with a gross vehicle weight of less than 6,000 pounds. Light trucks do not have a separate limit as they have had in the past. The depreciation expense limits for luxury autos and light trucks placed in service in tax year 2021 follow: Year 1 2021 Auto Limit $18,200 $16,200 Year 2 2022 Year 3 2023 Year 4 2024 $9,800 $5,860 These limits apply to $179, the 100% bonus, and regular MACRS depreciation. They are reduced further if the business use of the auto less than 100% If for some mason the 100% boous was not saken the im for regular depreciation would revert to $10,200

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