One of the Code’s more misleading terms has been the heading of Sec. 280F: “Limitation on depreciation for luxury automobiles” and, consequently, the name “luxury auto caps” commonly applied to the provision’s limits.
For years, these caps have belied their name by imposing economy-range limits on depreciation and expensing on passenger automobiles used in businesses. Until, that is, the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, raised these caps to a level more worthy of