What is the depreciation limit for passenger automobiles placed in service in 2023 under Section 280F(d)(7)?

The depreciation limit for passenger automobiles placed in service in 2023 under Section 280F(d)(7) is indeed $12,200 for the first year. This figure reflects the maximum amount that can be claimed as depreciation for a passenger vehicle under the IRS guidelines for that year.

These limits are set to prevent excessive deductions for luxurious vehicles and are adjusted periodically to account for inflation and changes in the market. The number $12,200 represents a statutory maximum and reflects an increase from previous years, aligning with the typical adjustments made by the IRS to maintain consistency with economic factors.

Additionally, special rules may apply for vehicles that meet certain criteria, such as being used for business purposes, which could further influence the depreciation amounts allowable in subsequent years. The other options presented do not reflect the correct limit as established for the year in question and thus would not apply for vehicles placed in service in 2023.