If a new car that is used predominantly in business is placed in service in 2010,the statutory dollar cost recovery limit under § 280F will depend on whether the taxpayer takes MARCS or straight-line depreciation.

Question

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The statutory dollar cost recovery limit under § 280F applies regardless of whether the taxpayer uses MACRS or straight-line depreciation. It limits the amount of depreciation that can be claimed on luxury vehicles used in business.

If a New Car That Is Used Predominantly in Business