If an automobile is placed in service in 2018, the limitation for cost recovery in 2020 will be based on the cost recovery limits for the year 2018.

Question

Quizplus · Accepted Answer

The statement is true. The cost recovery limits for automobiles are determined in the year the automobile is placed in service and are based on the depreciation limits and bonus depreciation rates in effect at that time. Therefore, the limitation for cost recovery in 2020 will be based on the cost recovery limits for 2018.

If an Automobile Is Placed in Service in 2018, the Limitation