Final answer:
The luxury auto cost recovery limits do not apply to all automobiles.
Step-by-step explanation:
The statement is False. The luxury auto cost recovery limits do not apply to all automobiles. These limits specifically apply to luxury vehicles used for business purposes. The tax code allows for different depreciation deductions based on the type and cost of the vehicle. For luxury automobiles, there are additional restrictions and limits on the amount that can be deducted each year. These limits are in place to prevent taxpayers from claiming excessive deductions for luxury vehicles.