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168(k)(4)(I)(iv).

Accordingly, this revenue procedure provides tables for passenger automobiles

for which the § 168(k) additional first year depreciation deduction applies. This revenue

procedure also provides tables for passenger automobiles for which the § 168(k)

additional first year depreciation deduction does not apply, either because taxpayer (1)

purchased the passenger automobile used; (2) did not use the passenger automobile

during 2011 more than 50 percent for business purposes; (3) elected out of the § 168(k)

additional first year depreciation deduction pursuant to § 168(k)(2)(D)(iii); or (4) elected

to increase the § 53 AMT credit limitation in lieu of claiming § 168(k) additional first year

depreciation.

.04 Section 280F(c) requires a reduction in the deduction allowed to the lessee of a

leased passenger automobile. The reduction must be substantially equivalent to the

limitations on the depreciation deductions imposed on owners of passenger

automobiles. Under § 1.280F-7(a) of the Income Tax Regulations, this reduction

requires a lessee to include in gross income an amount determined by applying a

formula to the amount obtained from a table. One table applies to lessees of trucks and

vans and another table applies to all other passenger automobiles. Each table shows

inclusion amounts for a range of fair market values for each taxable year after the

passenger automobile is first leased.

SECTION 3. SCOPE

.01 The limitations on depreciation deductions in section 4.01(2) of this revenue

procedure apply to passenger automobiles (other than leased passenger automobiles)

that are placed in service by the taxpayer in calendar year 2011, and continue to apply

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