Final answer:
The assertion that statutory dollar cost recovery limits under § 280F apply to all automobiles is false. There are exceptions for certain types of vehicles, particularly those with a GVWR over 6,000 pounds, that may not be subject to these limitations. Taxpayers should review current tax regulations or consult a tax professional for specific advice.
Step-by-step explanation:
The statement that 'statutory dollar cost recovery limits under § 280F do apply to all automobiles' is False. Section 280F of the IRS code establishes limits on the depreciation deduction that taxpayers can claim for cars, trucks, and vans used for business purposes.
However, these limits do not apply to all automobiles. The depreciation deduction is subject to certain limits designed to curb excessive deductions for luxury cars. These limits are known as the luxury auto limitations.
But, certain vehicles that are used for specific business purposes, classified as trucks or vans that do not function as passenger vehicles, or that have a gross vehicle weight over a specified threshold, are not subject to these statutory dollar cost recovery limits.
For instance, heavy machinery and vehicles with a gross vehicle weight rating (GVWR) above 6,000 pounds may qualify for larger deductions and might not be subject to the same depreciation limits as lighter passenger vehicles. Taxpayers need to consult the most current tax laws and possibly a tax professional to understand the specific applications and exceptions related to § 280F.