Small Business Taxes & Management

Auto and Vehicle Tables

 

Small Business Taxes & ManagementTM--Copyright 2016, A/N Group, Inc.

 

 

Standard Mileage Rates

Built into the standard mileage rate is an implied amount of depreciation. You generally don't have to worry about the number until you sell the car. See the table Depreciation Adjustment for Standard Mileage Rate, below.

                                      2016    2015    2014    2013    2012    2011    2010      
Business mileage (cents per mile)      54     57.5     56     56.5    55.5     51#     50     
Charitable mileage                     14      14      14      14      14      14      14   
Medical mileage                        19      23     23.5     24      23      19#    16.5 
Moving mileage                         19      23     23.5     24      23      19#    16.5
#From January 1 through June 30, 2011 the business rate is 51 cents/mile; from July 1 through December 31, 2011 the rate is 55.5 cents/mile. For medical and moving purposes the rate is 19 cents/mile for January 1 through June 30, 2011 and 23.5 cents/mile from July 1 through December 31, 2011.

 

Cents-Per-Mile Valuation Rule

When valuing personal use of a company auto (i.e., computing the value to put on the employee's W-2 for personal use), the standard mileage rate above can be used only if the fair market value of the auto when first made available to the employee does not exceed a specified maximum. The table below shows the maximum for the indicated years. (Reg. Sec. 1.61-21(d))

Year             Auto Max. Value    Truck/Van Max. Value

2016                 $15,900               $17,700
2015                  16,000                17,500
2014                  16,000                17,300
2013                  16,000                17,000
2012                  15,900                16,700
2011                  15,300                16,200
2010                  15,300                16,000
2009                  15,000                15,200
2008                  15,000                15,900

Where Fleet-Average Valuation Rule Used
Year             Auto Max. Value    Truck/Van Max. Value
  
2016                $21,200                $23,000  
2015                 21,300                 22,900
2014                 21,300                 22,600          

 

Computing the Fair Market Value of Auto or Light Truck

What's the fair market value of a new car? . . . The question is more than academic. The value is important if you're an employer and provide a car for an employee's use, if you lease a car, etc. You can use the cost of the vehicle as the fair market value, as long as the purchase is in an arm's length transaction. There are two safe harbors. You can use the manufacturer's suggested retail price less 8% or the manufacturer's invoice price plus 4%. Add sales tax and title fees to the price.

 

Depreciation Adjustment for Standard Mileage Rate

Year                  Depreciation per mile

2016                           24 cents per mile
2015                           24 
2014                           22 
2012-2013                      23 
2011                           22 
2010                           23 
2008-2009                      21 
2007                           19 
2005-2006                      17 
2003-2004                      16   
2001-2003                      15 
2000                           14 
1994-1999                      12 
1992-1993                      11.5


Example--You purchased a car in 2010 and use the car for business purposes 10,000 miles per year in 2010, 2011, 2012, 2013, and 2014. You sell the car on January 1, 2015. You've got to reduce your cost basis by $11,300 (10,000 x 0.23 for 2010, 10,000 x 0.22 for 2011, 0.23 x 10,000 for 2012 and 2013, and 0.22 x 10,000 for 2014). If the reduction is large enough, you might end up having to report a profit on the sale of the car.

 

Depreciation Limits for Cars and Trucks 2016

Depreciation on cars and light trucks and vans is limited. There are two different limits--one for cars and one for trucks. Since 50% bonus depreciation is not currently available there is only one set of limits for cars and another for trucks. (Special tables, not reproduced here, apply to pure electric vehicles.)

           Depreciation Limits for Passenger Automobiles

Tax Year          Standard        50% Bonus

First             $3,160           $11,160
Second             5,100             5,100 
Third              3,050             3,050
Subsequent         1,875             1,875


             Depreciation Limits for Trucks and Vans

Tax Year          Standard        50% Bonus

First             $3,560           $11,560
Second             5,700             5,700 
Third              3,350             3,350
Subsequent         2,075             2,075

Example: You purchased a new car in June 2016 $41,000. No matter how expensive the vehicle, your maximum depreciation in the first year (2016) is $11,160. (The deduction for a used car would be no more than $3,160 in the first year.) Your maximum depreciation in subsequent years is limited to the amounts indicated. The first-year limit also applies to any Sec. 179 expense option.

Note 1: The limitation on trucks and vans in the table above refers to passenger autos that are built on a truck chassis, including minivans and sport utility vehicles (SUVs) that are built on a truck chassis. Trucks and vans that are over the 6,000 pound loaded gross vehicle weight and qualified nonpersonal use vehicles are not subject to any depreciation limits. In order to qualify, the vehicle must be a qualified nonpersonal use vehicle. For trucks and vans, a qualified nonpersonal use vehicle is one that has been specially modified, such as by installation of permanent shelving and painting the vehicle to display advertising or the company's name, so that they are not likely to be used more than a de minimis amount for personal purposes. These specially manufactured or modified vehicles do not provide significant elements of personal benefit, and a taxpayer is unlikely to purchase these vehicles unless motivated by a valid business purpose that could not be met with a less-expensive vehicle. To be sure if you vehicle qualifies, check with your tax advisor.

Note 2: The Sec. 179 deduction for SUVs that meet the 6,000 pound loaded gross vehicle weight requirement purchased after October 22, 2004 is limited to $25,000. The SUV limit applies to any 4-wheeled vehicle primarily designed or used to carry passengers over public streets, roads, or highways, that is rated at more than 6,000 pounds gross vehicle weight and not more than 14,000 pounds GVW. However, the $25,000 limit does not apply to any vehicle:

 

Depreciation Limits for Cars and Trucks 2015

Depreciation on cars and light trucks and vans is limited. There are two different limits--one for cars and one for trucks. Since 50% bonus depreciation is not currently available there is only one set of limits for cars and another for trucks. (Special tables, not reproduced here, apply to pure electric vehicles.)

           Depreciation Limits for Passenger Automobiles

Tax Year          Standard        50% Bonus

First             $3,160           $11,160
Second             5,100             5,100 
Third              3,050             3,050
Subsequent         1,875             1,875


             Depreciation Limits for Trucks and Vans

Tax Year          Standard        50% Bonus

First             $3,460           $11,460
Second             5,600             5,600 
Third              3,350             3,350
Subsequent         1,975             1,975

Example: You purchased a new car in June 2015 $41,000. No matter how expensive the vehicle, your maximum depreciation in the first year (2015) is $11,160. (The deduction for a used car would be no more than $3,160 in the first year.) Your maximum depreciation in subsequent years is limited to the amounts indicated. The first-year limit also applies to any Sec. 179 expense option.

Depreciation Limits for Cars and Trucks 2014

Depreciation on cars and light trucks and vans is limited. There are two different limits--one for cars and one for trucks. In addition, for 2014 all new assets qualify for the 50% bonus depreciation. (Special tables, not reproduced here, apply to pure electric vehicles.)

           Depreciation Limits for Passenger Automobiles

Tax Year          Standard        50% Bonus

First             $3,160          $11,160
Second             5,100            5,100
Third              3,050            3,050
Subsequent         1,875            1,875


             Depreciation Limits for Trucks and Vans

Tax Year          Standard        50% Bonus

First             $3,460          $11,460
Second             5,500            5,500
Third              3,350            3,350
Subsequent         1,975            1,975

Example: You purchased a new car in June 2014 $41,000. No matter how expensive the vehicle, your maximum depreciation in the first year (2014) is $11,160. You would take $5,100 of depreciation in 2015; $3,050 in 2016; and $1,875 in 2017 and subsequent years until the car is fully depreciated (or disposed of). The first-year limit also applies to any Sec. 179 expense option.

 

Depreciation Limits for Cars and Trucks 2013

Depreciation on cars and light trucks and vans is limited. There are two different limits--one for cars and one for trucks. In addition, for 2013 all new assets qualify for the 50% bonus depreciation (100% bonus depreciation expired at the end of 2011).

           Depreciation Limits for Passenger Automobiles

Tax Year          Standard        50% Bonus

First             $3,160          $11,160
Second             5,100            5,100
Third              3,050            3,050
Subsequent         1,875            1,875


             Depreciation Limits for Trucks and Vans

Tax Year          Standard        50% Bonus

First             $3,360          $11,360
Second             5,400            5,400
Third              3,250            3,250
Subsequent         1,975            1,975

Example: You purchased a new car in June 2013 for $41,000. No matter how expensive the vehicle, your maximum depreciation in the first year (2013) is $11,160. You would take $5,100 of depreciation in 2014; $3,050 in 2015; and $1,875 in 2016 and subsequent years until the car is fully depreciated (or disposed of). Thus, a $41,000 car would take about 14 years to fully depreciate. Note. There are other rules that can further limit your depreciation. The first-year limit also applies to any Sec. 179 expense option.

 

Depreciation Limits for Cars and Trucks 2012

Depreciation on cars and light trucks and vans is limited. There are two different limits--one for cars and one for trucks. In addition, for 2012 all new assets qualify for the 50% bonus depreciation (100% bonus depreciation expired at the end of 2011).

           Depreciation Limits for Passenger Automobiles

Tax Year          Standard        50% Bonus

First             $3,160          $11,160
Second             5,100            5,100
Third              3,050            3,050
Subsequent         1,875            1,875


             Depreciation Limits for Trucks and Vans

Tax Year          Standard        50% Bonus

First             $3,360          $11,360
Second             5,300            5,300
Third              3,150            3,150
Subsequent         1,875            1,875

Example: You purchased a new car in June 2012 for $41,000. No matter how expensive the vehicle, your maximum depreciation in the first year (2012) is $11,160. You would take $5,100 of depreciation in 2013; $3,050 in 2014; and $1,875 in 2015 and subsequent years until the car is fully depreciated (or disposed of). Thus, a $41,000 car would take about 14 years to fully depreciate. Note. There are other rules that can further limit your depreciation. The first-year limit also applies to any Sec. 179 expense option.

 

Depreciation Limits for Cars and Trucks 2011

Depreciation on cars and light trucks and vans is limited. There are two different limits--one for cars and one for trucks. In addition, for 2011 all new assets qualify for the 50% or 100% bonus depreciation.

           Depreciation Limits for Passenger Automobiles

Tax Year           Standard     50%/100% Bonus

First             $3,060          $11,060
Second             4,900            4,900
Third              2,950            2,950
Subsequent         1,775            1,775


             Depreciation Limits for Trucks and Vans

Tax Year           Standard     50%/100% Bonus

First             $3,260          $11,260
Second             5,200            5,200
Third              3,150            3,150
Subsequent         1,875            1,875

Depreciation Limits for Cars and Trucks 1995-2011

The maximum depreciation for autos and trucks and vans for the fourth and subsequent years of ownership for the years 1995-2009 are:

                    Depreciation Limits Fourth and Subsequent Years
Year Placed in Service       Autos          Trucks and Vans

2011                       $1,775                $1,875
2010                        1,775                 1,875
2009                        1,775                 1,775
2008                        1,775                 1,875
2007                        1,775                 1,875
2006                        1,775                 1,875
2005                        1,675                 1,875
2004                        1,675                 1,875
2003                        1,775                 1,975
1995-2002                   1,775                 1,775

 

Annual Lease Value Tables

Use this table to find the annual lease value for imputing income on an employee's use of a vehicle. The fair market value is determined at the time the vehicle is first made available to the employee. The table applies to vehicles provided to an employee for a continuous period of 30 days or more. See below for shorter time periods.


Automobile Fair Market Value          Annual Lease Value

$ 1,000 to 1,999 $ 850 2,000 to 2,999 1,100 3,000 to 3,999 1,350 4,000 to 4,999 1,600 5,000 to 5,999 1,850 6,000 to 6,999 2,100 7,000 to 7,999 2,350 8,000 to 8,999 2,600 9,000 to 9,999 2,850 10,000 to 10,999 3,100 11,000 to 11,999 3,350 12,000 to 12,999 3,600 13,000 to 13,999 3,850 14,000 to 14,999 4,100 15,000 to 15,999 4,350 16,000 to 16,999 4,600 17,000 to 17,999 4,850 18,000 to 18,999 5,100 19,000 to 19,999 5,350 20,000 to 20,999 5,600 21,000 to 21,999 5,850 22,000 to 22,999 6,100 23,000 to 23,999 6,350 24,000 to 24,999 6,600 25,000 to 25,999 6,850 26,000 to 27,999 7,250 28,000 to 29,999 7,750 30,000 to 31,999 8,250 32,000 to 33,999 8,750 34,000 to 35,999 9,250 36,000 to 37,999 9,750 38,000 to 39,999 10,250 40,000 to 41,999 10,750 42,000 to 43,999 11,250 44,000 to 45,999 11,750 46,000 to 47,999 12,250 48,000 to 49,999 12,750 50,000 to 51,999 13,250 52,000 to 53,999 13,750 54,000 to 55,999 14,250 56,000 to 57,999 14,750 58,000 to 59,999 15,250

For vehicles with a fair market value in excess of $59,999, you can compute the annual lease value by multiplying the fair market value by 0.25 and adding $500 to the result.

Daily Lease Value

If you provide an automobile to an employee for a continuous period of less than 30 days, you must use the daily lease value to figure its value. You compute the daily lease value by multiplying the annual lease value by a fraction, using four times the number of days of availability as the numerator and 365 as the denominator. For example, 9 days for a $40,000 vehicle would be (9 x 4)/365 x $10,750 or $1,060.27.

You can apply a prorated annual lease value for a period of continuous availability of less than 30 days by treating the auto as if it had been available for 30 days. Use a prorated annual lease value if it would result in a lower valuation than applying the daily lease value to the shorter period of availability.

 

Inclusion Amounts for Autos First Leased in 2016

Notes--

Fair Market Value            Tax Year of Lease
  Over    Not Over      1st    2nd    3rd    4th    5th

 19,000    19,500         6     13     20     23     27
 19,500    20,000         7     15     23     27     30
 20,000    20,500         8     17     26     30     35
 20,500    21,000         9     19     29     33     39
 21,000    21,500        10     21     31     38     42
 21,500    22,000        11     23     34     41     47
 22,000    23,000        12     26     39     46     53
 23,000    24,000        14     30     44     54     60
 24,000    25,000        16     34     50     60     69
 25,000    26,000        17     38     56     67     78
 26,000    27,000        19     42     62     74     85
 27,000    28,000        21     46     68     81     93
 28,000    29,000        23     50     73     89    101
 29,000    30,000        25     53     80     95    110
 30,000    31,000        26     58     85    102    118
 31,000    32,000        28     62     91    109    126
 32,000    33,000        30     65     98    116    134
 33,000    34,000        32     69    103    123    142
 34,000    35,000        34     73    109    130    150
 35,000    36,000        35     77    115    137    158
 36,000    37,000        37     81    121    144    166
 37,000    38,000        39     85    127    151    174
 38,000    39,000        41     89    132    158    183
 39,000    40,000        42     93    138    166    190
 40,000    41,000        44     97    144    172    199
 41,000    42,000        46    101    150    179    207
 42,000    43,000        48    105    155    187    215
 43,000    44,000        50    109    161    193    223
 44,000    45,000        51    113    167    201    231
 45,000    46,000        53    117    173    207    239
 46,000    47,000        55    121    179    214    247
 47,000    48,000        57    124    185    222    255
 48,000    49,000        59    128    191    228    264
 49,000    50,000        60    133    196    236    271
 50,000    51,000        62    136    203    242    280
 51,000    52,000        64    140    209    249    288
 52,000    53,000        66    144    214    257    295
 53,000    54,000        68    148    220    263    304
 54,000    55,000        69    152    226    271    312
 55,000    56,000        71    156    232    277    320
 56,000    57,000        73    160    238    284    328
 57,000    58,000        75    164    243    292    336
 58,000    59,000        77    168    249    298    345
 59,000    60,000        78    172    255    306    352
 60,000    62,000        81    178    264    316    364
 62,000    64,000        85    185    276    330    381
 64,000    66,000        88    194    287    344    397
 66,000    68,000        92    201    299    358    413
 68,000    70,000        95    209    311    372    430 
 70,000    72,000        99    217    322    387    445
 72,000    74,000       102    225    334    400    462
 74,000    76,000       106    233    346    414    478 
 76,000    78,000       110    241    357    428    494
 78,000    80,000       113    249    369    442    510
 80,000    85,000       120    262    390    467    538
 85,000    90,000       128    282    419    502    579
 90,000    95,000       137    302    448    537    620
 95,000   100,000       146    322    477    572    660
100,000   110,000       160    351    521    625    721
110,000   120,000       178    390    580    695    801

Example--On January 1, 2016 your business enters into a 3-year lease for an auto with a fair market value of $51,500. Your annual payments are $7,188. For 2016 the business can only deduct $7,124 ($7,188 less $64, from the table above). (For 2017, you can only deduct $7,048, $7,188 less $140.) If the car is used less than 100% for business, you cannot deduct any lease payments related to the nonbusiness portion. But you also reduce the annual inclusion amount by the personal usage. For example, if the car above were used only 70% for business in 2016, you could only deduct $4,987. Prorate amounts for vehicles first leased after January 1 of the year. Note. Most tax preparation software will make the adjustment when you enter the lease inclusion amount for the year.

 

Inclusion Amounts for Trucks and Vans First Leased in 2016

Notes--



Fair Market Value            Tax Year of Lease
  Over    Not Over       1st   2nd    3rd    4th    5th

 19,500    20,000          3     8     12     14     16
 20,000    20,500          4    10     15     17     20
 20,500    21,000          5    12     17     21     25
 21,000    21,500          6    14     20     25     28
 21,500    22,000          7    16     23     28     32
 22,000    23,000          8    19     28     33     38
 23,000    24,000         10    23     33     41     46
 24,000    25,000         12    26     40     47     55
 25,000    26,000         14    30     46     54     63
 26,000    27,000         16    34     51     62     70
 27,000    28,000         17    38     58     68     79
 28,000    29,000         19    42     63     76     86
 29,000    30,000         21    46     69     82     95
 30,000    31,000         23    50     75     89    103
 31,000    32,000         25    54     80     97    111
 32,000    33,000         26    58     86    104    119
 33,000    34,000         28    62     92    111    127
 34,000    35,000         30    66     98    117    136
 35,000    36,000         32    70    104    124    143
 36,000    37,000         34    73    110    132    151
 37,000    38,000         35    78    115    139    160
 38,000    39,000         37    82    121    146    167 
 39,000    40,000         39    85    128    152    176
 40,000    41,000         41    89    133    160    184
 41,000    42,000         42    94    139    166    192
 42,000    43,000         44    97    145    174    200
 43,000    44,000         46   101    151    181    208
 44,000    45,000         48   105    157    187    217
 45,000    46,000         50   109    162    195    224
 46,000    47,000         51   113    169    201    233
 47,000    48,000         53   117    174    209    240
 48,000    49,000         55   121    180    216    248
 49,000    50,000         57   125    186    222    257
 50,000    51,000         59   129    191    230    265
 51,000    52,000         60   133    197    237    273
 52,000    53,000         62   137    203    244    281
 53,000    54,000         64   141    209    250    290
 54,000    55,000         66   144    216    257    298
 55,000    56,000         68   148    221    265    305
 56,000    57,000         69   153    226    272    314
 57,000    58,000         71   156    233    279    321
 58,000    59,000         73   160    239    285    330
 59,000    60,000         75   164    244    293    338
 60,000    62,000         77   170    253    304    350
 62,000    64,000         81   178    265    317    366
 64,000    66,000         85   186    276    331    383
 66,000    68,000         88   194    288    345    399
 68,000    70,000         92   202    299    360    414
 70,000    72,000         95   210    311    374    431 
 72,000    74,000         99   217    324    387    447
 74,000    76,000        102   226    335    401    463
 76,000    78,000        106   233    347    415    480
 78,000    80,000        110   241    358    430    495
 80,000    85,000        116   255    379    454    524
 85,000    90,000        125   274    409    489    564
 

 

Inclusion Amounts for Autos First Leased in 2015

Notes--

Fair Market Value            Tax Year of Lease
  Over    Not Over      1st    2nd    3rd    4th    5th
 17,500    18,000         3      6      9     10     11
 18,000    18,500         4      7     11     13     15
 18,500    19,000         4      9     14     15     18
 19,000    19,500         5     11     15     19     21
 19,500    20,000         6     12     18     22     24
 20,000    20,500         6     14     20     25     27
 20,500    21,000         7     15     23     27     31
 21,000    21,500         8     17     25     30     34
 21,500    22,000         8     18     25     32     38
 22,000    23,000        10     21     31     37     42
 23,000    24,000        11     24     36     42     49
 24,000    25,000        12     27     41     48     55
 25,000    26,000        14     30     45     54     62
 26,000    27,000        15     34     49     60     68
 27,000    28,000        17     37     54     65     75
 28,000    29,000        18     40     59     71     81
 29,000    30,000        20     43     64     76     87
 30,000    31,000        21     46     69     81     95
 31,000    32,000        23     49     73     88    100
 32,000    33,000        24     52     78     93    107
 33,000    34,000        25     56     82     99    114
 34,000    35,000        27     59     87    104    120
 35,000    36,000        28     62     92    110    126
 36,000    37,000        30     65     96    116    133
 37,000    38,000        31     68    102    121    139
 38,000    39,000        33     71    106    127    146
 39,000    40,000        34     75    110    132    153
 40,000    41,000        35     78    115    138    159
 41,000    42,000        37     81    120    143    166
 42,000    43,000        38     84    125    149    172
 43,000    44,000        40     87    129    155    179
 44,000    45,000        41     90    134    161    185
 45,000    46,000        43     93    139    166    191
 46,000    47,000        44     97    143    172    198
 47,000    48,000        45    100    148    177    205
 48,000    49,000        47    103    153    183    210
 49,000    50,000        48    106    158    188    218
 50,000    51,000        50    109    162    194    224
 51,000    52,000        51    112    167    200    230
 52,000    53,000        53    115    172    205    237
 53,000    54,000        54    119    172    211    243
 54,000    55,000        56    122    180    217    250
 55,000    56,000        57    125    186    222    256
 56,000    57,000        58    128    191    227    263
 57,000    58,000        60    131    195    234    269
 58,000    59,000        61    135    199    239    276
 59,000    60,000        63    137    205    244    283
 60,000    62,000        65    142    212    253    292
 62,000    64,000        68    149    220    265    304
 64,000    66,000        71    155    230    275    318
 66,000    68,000        73    162    239    287    331
 68,000    70,000        76    168    249    298    343 
 70,000    72,000        79    174    258    309    357
 72,000    74,000        82    180    268    320    370
 74,000    76,000        85    186    277    332    383 
 76,000    78,000        88    193    286    343    396
 78,000    80,000        91    199    296    354    408
 80,000    85,000        96    210    312    274    431
 85,000    90,000       102    226    335    402    464
 90,000    95,000       110    242    359    430    496
 95,000   100,000       117    258    382    458    529
100,000   110,000       128    281    418    500    577
110,000   120,000       142    313    464    556    643

Example--On January 1, 2015 your business enters into a 3-year lease for an auto with a fair market value of $51,500. Your annual payments are $7,188. For 2015 the business can only deduct $7,137 ($7,188 less $51, from the table above). (For 2016, you can only deduct $7,076, $7,188 less $112.) If the car is used less than 100% for business, you cannot deduct any lease payments related to the nonbusiness portion. But you also reduce the annual inclusion amount by the personal usage. For example, if the car above were used only 70% for business in 2015, you could only deduct $4,996. Prorate amounts for vehicles first leased after January 1 of the year. Note. Most tax preparation software will make the adjustment when you enter the lease inclusion amount for the year.

 

Inclusion Amounts for Trucks and Vans First Leased in 2015

Notes--



Fair Market Value            Tax Year of Lease
  Over    Not Over       1st   2nd    3rd    4th    5th
 18,500    19,000          2     4      6      8      9
 19,000    19,500          3     6      8     11     12
 19,500    20,000          4     7     11     13     16
 20,000    20,500          4     9     13     16     19
 20,500    21,000          5    11     15     19     22
 21,000    21,500          6    12     18     22     25
 21,500    22,000          6    14     20     28     28
 22,000    23,000          7    16     24     29     33
 23,000    24,000          9    19     29     34     40
 24,000    25,000         10    23     33     40     46
 25,000    26,000         12    25     38     46     53
 26,000    27,000         13    29     42     51     60
 27,000    28,000         15    32     47     57     65
 28,000    29,000         16    35     52     62     73
 29,000    30,000         18    38     56     68     79
 30,000    31,000         19    41     61     74     85
 31,000    32,000         20    45     66     79     91
 32,000    33,000         22    48     70     85     98
 33,000    34,000         23    51     75     91    104
 34,000    35,000         25    54     80     96    111
 35,000    36,000         26    57     85    101    118
 36,000    37,000         28    60     89    108    124
 37,000    38,000         29    63     94    113    131
 38,000    39,000         30    67     98    119    137 
 39,000    40,000         32    70    103    124    144
 40,000    41,000         33    73    108    130    150
 41,000    42,000         35    76    113    135    157
 42,000    43,000         36    79    118    141    163
 43,000    44,000         38    82    112    147    169
 44,000    45,000         39    85    127    153    176
 45,000    46,000         40    89    131    158    183
 46,000    47,000         42    92    136    163    189
 47,000    48,000         43    95    141    169    195
 48,000    49,000         45    98    145    175    202
 49,000    50,000         46   101    151    180    208
 50,000    51,000         48   104    155    186    215
 51,000    52,000         49   108    159    192    221
 52,000    53,000         51   110    165    197    228
 53,000    54,000         52   114    169    203    234
 54,000    55,000         53   117    174    208    241
 55,000    56,000         55   120    178    214    248
 56,000    57,000         56   123    183    220    254
 57,000    58,000         58   126    188    225    261
 58,000    59,000         59   130    192    231    267
 59,000    60,000         61   133    197    236    273
 60,000    62,000         63   137    204    245    283
 62,000    64,000         66   144    213    256    296
 64,000    66,000         68   150    223    268    308
 66,000    68,000         71   157    232    278    322
 68,000    70,000         74   163    241    290    335
 70,000    72,000         77   169    251    307    348 
 72,000    74,000         80   175    261    312    361
 74,000    76,000         83   182    269    324    374
 76,000    78,000         86   188    279    335    386
 78,000    80,000         89   194    288    346    400
 80,000    85,000         94   205    305    366    422
 85,000    90,000        101   221    328    394    455
 

 

Inclusion Amounts for Autos First Leased in 2014

Notes--

Fair Market Value            Tax Year of Lease
  Over    Not Over      1st    2nd    3rd    4th    5th
 18,500    19,000         3      5      8     10     11
 19,000    19,500         3      6     10     11     13
 19,500    20,000         3      8     11     13     14
 20,000    20,500         4      8     13     14     17
 20,500    21,000         4      9     14     17     18
 21,000    21,500         5     10     15     18     21
 21,500    22,000         5     11     17     20     22
 22,000    23,000         6     13     18     23     25
 23,000    24,000         7     14     22     26     29
 24,000    25,000         8     16     25     29     33
 25,000    26,000         8     19     27     32     38
 26,000    27,000         9     20     31     35     42
 27,000    28,000        10     22     33     40     45
 28,000    29,000        11     24     36     43     49
 29,000    30,000        12     26     39     46     53
 30,000    31,000        13     28     41     50     57
 31,000    32,000        14     30     44     53     61
 32,000    33,000        14     32     47     56     65
 33,000    34,000        15     34     50     59     69
 34,000    35,000        16     36     52     64     72
 35,000    36,000        17     38     55     67     76
 36,000    37,000        18     39     59     70     80
 37,000    38,000        19     41     61     74     84
 38,000    39,000        20     43     64     77     88
 39,000    40,000        21     45     67     80     92
 40,000    41,000        21     47     70     84     96
 41,000    42,000        22     49     73     87    100
 42,000    43,000        23     51     75     91    104
 43,000    44,000        24     53     78     94    108
 44,000    45,000        25     55     81     97    112
 45,000    46,000        26     56     84    101    116
 46,000    47,000        27     58     87    104    120
 47,000    48,000        28     60     90    107    124
 48,000    49,000        28     62     93    111    127
 49,000    50,000        29     64     96    114    131
 50,000    51,000        30     66     98    118    135
 51,000    52,000        31     68    101    121    139
 52,000    53,000        32     70    104    124    143
 53,000    54,000        33     72    106    128    147
 54,000    55,000        34     74    109    131    151
 55,000    56,000        34     76    112    135    155
 56,000    57,000        35     78    115    138    159
 57,000    58,000        36     80    118    141    163
 58,000    59,000        37     81    121    145    167
 59,000    60,000        38     83    124    148    171
 60,000    62,000        39     86    128    153    177
 62,000    64,000        41     90    134    159    185
 64,000    66,000        43     94    139    167    192
 66,000    68,000        44     98    145    173    201
 68,000    70,000        46    102    150    180    209 
 70,000    72,000        48    105    156    188    216
 72,000    74,000        50    109    162    194    224
 74,000    76,000        51    113    168    200    232 
 76,000    78,000        53    117    173    208    239
 78,000    80,000        55    120    179    215    247
 80,000    85,000        58    127    189    226    261
 85,000    90,000        62    137    203    243    281
 90,000    95,000        67    146    217    260    301
 95,000   100,000        71    156    231    277    320
100,000   110,000        77    170    253    303    349
110,000   120,000        86    189    281    337    389

Example--On January 1, 2014 your business enters into a 3-year lease for an auto with a fair market value of $51,500. Your annual payments are $7,188. For 2014 the business can only deduct $7,120 ($7,188 less $68, from the table above). (For 2015, you can only deduct $7,087, $7,188 less $101.) If the car is used less than 100% for business, you cannot deduct any lease payments related to the nonbusiness portion. But you also reduce the annual inclusion amount by the personal usage. For example, if the car above were used only 70% for business in 2014, you could only deduct $4,984. Prorate amounts for vehicles first leased after January 1 of the year. Note. Most tax preparation software will make the adjustment when you enter the lease inclusion amount for the year.

 

Inclusion Amounts for Trucks and Vans First Leased in 2014

Notes--



Fair Market Value            Tax Year of Lease
  Over    Not Over       1st   2nd    3rd    4th    5th
$19,000    19,500          2     4      5      7      8
 19,500    20,000          2     5      7      8     10
 20,000    20,500          3     6      8     10     12
 20,500    21,000          3     7     10     11     14
 21,000    21,500          3     8     11     14     15
 21,500    22,000          4     9     12     15     18
 22,000    23,000          5    10     15     17     21
 23,000    24,000          5    12     18     21     24
 24,000    25,000          6    14     20     25     28
 25,000    26,000          7    16     23     28     32
 26,000    27,000          8    18     26     31     36
 27,000    28,000          9    20     28     35     40
 28,000    29,000         10    21     32     38     44
 29,000    30,000         11    23     35     41     48
 30,000    31,000         11    26     37     45     52
 31,000    32,000         12    27     41     48     56
 32,000    33,000         13    29     43     52     60
 33,000    34,000         14    31     46     55     64
 34,000    35,000         15    33     49     58     68
 35,000    36,000         16    35     51     62     72
 36,000    37,000         17    37     54     65     76
 37,000    38,000         18    38     58     69     79
 38,000    39,000         18    41     60     72     83 
 39,000    40,000         19    43     63     75     87
 40,000    41,000         20    44     66     79     91
 41,000    42,000         21    46     69     82     95
 42,000    43,000         22    48     72     85     99
 43,000    44,000         23    50     74     89    103
 44,000    45,000         24    52     77     93    106
 45,000    46,000         24    54     80     96    111
 46,000    47,000         25    56     83     99    115
 47,000    48,000         26    58     86    102    119
 48,000    49,000         27    60     88    106    123
 49,000    50,000         28    62     91    109    127
 50,000    51,000         29    63     95    113    130
 51,000    52,000         30    65     97    117    134
 52,000    53,000         31    67    100    120    138
 53,000    54,000         31    69    103    123    142
 54,000    55,000         32    71    106    126    146
 55,000    56,000         33    73    108    130    150
 56,000    57,000         34    75    111    133    154
 57,000    58,000         35    77    114    137    157
 58,000    59,000         36    79    116    141    161
 59,000    60,000         37    80    120    144    165
 60,000    62,000         68    84    123    149    172
 62,000    64,000         40    87    130    155    180
 64,000    66,000         41    91    136    162    187
 66,000    68,000         43    95    141    169    195
 68,000    70,000         45    99    146    176    203
 70,000    72,000         47   102    153    182    211 
 72,000    74,000         48   107    158    189    219
 74,000    76,000         50   110    164    196    227
 76,000    78,000         52   114    169    203    235
 78,000    80,000         54   118    175    209    243
 80,000    85,000         57   124    185    222    256
 85,000    90,000         61   134    199    239    276
 

 

Inclusion Amounts for Autos First Leased in 2013

Notes--

Fair Market Value            Tax Year of Lease
  Over    Not Over      1st    2nd    3rd    4th    5th
 19,000    19,500         2      4      6      7      8
 19,500    20,000         2      5      6      9      9
 20,000    20,500         2      5      8      9     11
 20,500    21,000         3      6      8     10     12
 21,000    21,500         3      6     10     11     13
 21,500    22,000         3      7     10     13     14
 22,000    23,000         4      8     11     14     16
 23,000    24,000         4      9     14     16     18
 24,000    25,000         5     10     15     18     21
 25,000    26,000         5     12     16     21     23
 26,000    27,000         6     12     19     23     25
 27,000    28,000         6     14     20     25     28
 28,000    29,000         7     15     22     27     30
 29,000    30,000         7     16     24     29     33
 30,000    31,000         8     17     26     31     35
 31,000    32,000         8     19     27     33     38
 32,000    33,000         9     20     29     35     40
 33,000    34,000        10     21     31     37     43
 34,000    35,000        10     22     33     39     45
 35,000    36,000        11     23     35     41     48
 36,000    37,000        11     25     36     43     50
 37,000    38,000        12     26     38     45     53
 38,000    39,000        12     27     40     47     55
 39,000    40,000        13     28     42     49     58
 40,000    41,000        13     29     44     52     59
 41,000    42,000        14     30     45     54     63
 42,000    43,000        14     32     47     56     64
 43,000    44,000        15     33     48     59     67
 44,000    45,000        15     34     51     60     69
 45,000    46,000        16     35     52     63     72
 46,000    47,000        17     36     54     65     74
 47,000    48,000        17     38     55     67     77
 48,000    49,000        18     39     57     69     79
 49,000    50,000        18     40     59     71     82
 50,000    51,000        19     41     61     73     84
 51,000    52,000        19     42     63     75     87
 52,000    53,000        20     43     65     77     89
 53,000    54,000        20     45     66     79     92
 54,000    55,000        21     46     68     81     94
 55,000    56,000        21     47     70     84     96
 56,000    57,000        22     48     72     85     99
 57,000    58,000        22     50     73     88    101
 58,000    59,000        23     51     75     90    103
 59,000    60,000        24     52     76     92    106
 60,000    62,000        24     54     79     95    110
 62,000    64,000        25     56     83     99    115
 64,000    66,000        27     58     87    103    120
 66,000    68,000        28     60     90    108    125
 68,000    70,000        29     63     93    112    130 
 70,000    72,000        30     65     97    117    134
 72,000    74,000        31     68    100    121    139
 74,000    76,000        32     70    104    125    144 
 76,000    78,000        33     73    107    129    149
 78,000    80,000        34     75    111    133    154
 80,000    85,000        36     79    117    141    162
 85,000    90,000        39     85    126    151    174
 90,000    95,000        41     91    135    162    186
 95,000   100,000        44     97    144    172    199
100,000   110,000        48    106    157    188    217
110,000   120,000        53    118    174    210    241

Example--On January 1, 2013 your business enters into a lease for an auto with a fair market value of $51,500. Your annual payments are $7,188. For 2013 the business can only deduct $7,169 ($7,188 less $19, from the table above). (For 2014, you can only deduct $7,146, $7,188 less $42.) If the car is used less than 100% for business, you cannot deduct any lease payments related to the nonbusiness portion. But you also reduce the annual inclusion amount by the personal usage. For example, if the car above were used only 70% for business in 2013, you could only deduct $5,018. Prorate amounts for vehicles first leased after January 1 of the year. Note. Most tax preparation software will make the adjustment when you enter the lease inclusion amount for the year.

 

Inclusion Amounts for Trucks and Vans First Leased in 2013

Notes--



Fair Market Value            Tax Year of Lease
  Over    Not Over       1st   2nd    3rd    4th    5th
$19,000    19,500          1     3      4      5      6
 19,500    20,000          2     3      5      6      7
 20,000    20,500          2     4      6      7      8
 20,500    21,000          2     5      7      8      9
 21,000    21,500          2     5      8      9     11
 21,500    22,000          3     6      8     10     12
 22,000    23,000          3     7     10     11     14
 23,000    24,000          4     8     11     14     16
 24,000    25,000          4     9     14     16     18
 25,000    26,000          5    10     15     18     21
 26,000    27,000          5    12     17     20     23
 27,000    28,000          6    13     18     23     25
 28,000    29,000          6    14     20     25     28
 29,000    30,000          7    15     22     27     30
 30,000    31,000          7    16     24     29     33
 31,000    32,000          8    17     26     31     35
 32,000    33,000          8    19     27     33     38
 33,000    34,000          9    20     29     35     41
 34,000    35,000         10    21     31     37     43
 35,000    36,000         10    22     33     39     46
 36,000    37,000         11    23     35     41     48
 37,000    38,000         11    25     36     43     51
 38,000    39,000         12    26     38     45     53 
 39,000    40,000         12    27     40     48     58
 40,000    41,000         13    28     42     49     58
 41,000    42,000         13    29     44     52     60
 42,000    43,000         14    30     46     54     62
 43,000    44,000         14    32     47     56     65
 44,000    45,000         15    33     48     59     67
 45,000    46,000         15    34     51     60     70
 46,000    47,000         16    35     52     63     72
 47,000    48,000         17    36     54     65     74
 48,000    49,000         17    38     55     67     77
 49,000    50,000         18    39     57     69     79
 50,000    51,000         18    40     59     71     82
 51,000    52,000         19    41     61     73     84
 52,000    53,000         19    42     63     75     87
 53,000    54,000         20    43     65     77     89
 54,000    55,000         20    45     66     80     91
 55,000    56,000         21    46     68     81     94
 56,000    57,000         21    47     70     84     96
 57,000    58,000         22    48     72     86     98
 58,000    59,000         22    50     73     88    101
 59,000    60,000         23    51     75     90    103
 60,000    62,000         24    52     78     93    108
 62,000    64,000         25    55     81     97    113
 64,000    66,000         26    57     85    101    118
 66,000    68,000         27    60     88    106    122
 68,000    70,000         28    62     92    110    127
 70,000    72,000         29    64     96    114    132 
 72,000    74,000         30    67     99    118    137
 74,000    76,000         31    69    103    122    142
 76,000    78,000         32    72    105    127    147
 78,000    80,000         34    73    110    131    151
 80,000    85,000         35    78    116    138    160
 85,000    90,000         38    84    124    149    172
 

 

Inclusion Amounts for Autos First Leased in 2012

Notes--

Fair Market Value            Tax Year of Lease
  Over    Not Over      1st    2nd    3rd    4th    5th
$18,500    19,000         2      4      5      6      8
 19,000    19,500         2      4      7      7      9
 19,500    20,000         2      5      8      8     10
 20,000    20,500         3      5      9     10     11
 20,500    21,000         3      6      9     12     12
 21,000    21,500         3      7     10     12     14
 21,500    22,000         3      8     11     13     16
 22,000    23,000         4      8     13     15     17
 23,000    24,000         4     10     15     17     20
 24,000    25,000         5     11     17     19     23
 25,000    26,000         6     12     19     21     26
 26,000    27,000         6     14     20     24     28
 27,000    28,000         7     15     22     26     31
 28,000    29,000         7     16     25     28     33
 29,000    30,000         8     18     25     32     35
 30,000    31,000         9     19     27     34     38
 31,000    32,000         9     20     30     36     41
 32,000    33,000        10     21     32     38     43
 33,000    34,000        10     23     33     41     46
 34,000    35,000        11     24     35     43     49
 35,000    36,000        12     25     37     45     52
 36,000    37,000        12     27     39     47     54
 37,000    38,000        13     28     41     49     57
 38,000    39,000        13     29     43     52     59
 39,000    40,000        14     30     45     54     62
 40,000    41,000        14     32     47     56     65
 41,000    42,000        15     33     49     58     68
 42,000    43,000        16     34     51     61     70
 43,000    44,000        16     36     52     63     73
 44,000    45,000        17     37     54     66     75
 45,000    46,000        17     38     57     67     78
 46,000    47,000        18     39     59     70     80
 47,000    48,000        19     40     61     72     83
 48,000    49,000        19     42     62     75     86
 49,000    50,000        20     43     64     77     89
 50,000    51,000        20     45     66     79     91
 51,000    52,000        21     46     68     81     94
 52,000    53,000        21     47     70     84     96
 53,000    54,000        22     48     72     86     99
 54,000    55,000        23     49     74     88    102
 55,000    56,000        23     51     76     90    104
 56,000    57,000        24     52     78     92    107
 57,000    58,000        24     54     79     95    110
 58,000    59,000        25     55     81     97    113
 59,000    60,000        26     56     83    100    115
 60,000    62,000        26     58     86    103    119
 62,000    64,000        28     60     90    108    124
 64,000    66,000        29     63     94    112    129
 66,000    68,000        30     66     97    117    135
 68,000    70,000        31     68    102    121    140 
 70,000    72,000        32     71    105    126    145
 72,000    74,000        33     74    109    130    151
 74,000    76,000        35     76    113    135    156 
 76,000    78,000        36     78    117    140    161
 78,000    80,000        37     81    120    145    166
 80,000    85,000        39     86    127    152    176
 85,000    90,000        42     92    137    163    189
 90,000    95,000        45     98    147    175    202
 95,000   100,000        48    105    155    187    215
100,000   110,000        52    115    170    203    235
110,000   120,000        58    127    189    227    262

Example--On January 1, 2012 your business enters into a lease for an auto with a fair market value of $51,500. Your annual payments are $7,188. For 2012 the business can only deduct $7,167 ($7,188 less $21, from the table above). (For 2013, you can only deduct $7,142, $7,188 less $46.) If the car is used less than 100% for business, you cannot deduct any lease payments related to the nonbusiness portion. But you also reduce the annual inclusion amount by the personal usage. For example, if the car above were used only 70% for business in 2012, you could only deduct $5,017. Prorate amounts for vehicles first leased after January 1 of the year. Note. Most tax preparation software will make the adjustment when you enter the lease inclusion amount for the year.

 

Inclusion Amounts for Trucks and Vans First Leased in 2012

Notes--



Fair Market Value            Tax Year of Lease
  Over    Not Over       1st   2nd    3rd    4th    5th
$19,000    19,500          1     4      5      6      7
 19,500    20,000          2     4      6      7      9
 20,000    20,500          2     5      7      8     10
 20,500    21,000          2     5      8     10     11
 21,000    21,500          3     6      9     10     13
 21,500    22,000          3     6     10     12     14
 22,000    23,000          3     8     11     14     15
 23,000    24,000          4     9     13     16     18
 24,000    25,000          4    10     15     19     21
 25,000    26,000          5    11     17     21     24
 26,000    27,000          6    12     19     23     26
 27,000    28,000          6    14     21     25     29
 28,000    29,000          7    15     23     27     32
 29,000    30,000          7    17     24     30     34
 30,000    31,000          8    18     26     32     37
 31,000    32,000          9    19     28     34     40
 32,000    33,000          9    20     31     36     42
 33,000    34,000         10    21     33     39     44
 34,000    35,000         10    23     34     41     48
 35,000    36,000         11    24     36     44     50
 36,000    37,000         12    25     38     46     53
 37,000    38,000         12    27     40     48     55
 38,000    39,000         13    28     42     50     58 
 39,000    40,000         33    29     44     53     60
 40,000    41,000         14    31     45     55     63
 41,000    42,000         14    32     48     57     66
 42,000    43,000         15    33     50     59     69
 43,000    44,000         16    34     52     61     72
 44,000    45,000         16    36     53     64     74
 45,000    46,000         17    37     55     66     77
 46,000    47,000         17    38     58     68     79
 47,000    48,000         18    40     59     70     82
 48,000    49,000         19    41     61     73     84
 49,000    50,000         19    42     63     75     87
 50,000    51,000         20    43     65     78     89
 51,000    52,000         20    45     66     80     93
 52,000    53,000         21    46     68     83     95
 53,000    54,000         21    48     70     84     98
 54,000    55,000         22    49     72     87    100
 55,000    56,000         23    50     74     89    103
 56,000    57,000         23    51     76     92    105
 57,000    58,000         24    52     78     94    108
 58,000    59,000         24    54     80     96    111
 59,000    60,000         25    55     82     98    114
 60,000    62,000         26    57     85    101    118
 62,000    64,000         27    60     88    106    123
 64,000    66,000         28    62     93    110    128
 66,000    68,000         29    65     96    115    134
 68,000    70,000         30    67    100    120    139
 70,000    72,000         32    70    103    125    144 
 72,000    74,000         33    72    108    129    149
 74,000    76,000         34    75    111    134    155
 76,000    78,000         35    78    115    138    160
 78,000    80,000         36    80    119    143    165
 80,000    85,000         38    85    125    151    175
 85,000    90,000         41    91    135    163    187
 

 

Inclusion Amounts for Autos First Leased in 2011

Notes--

Fair Market Value            Tax Year of Lease
  Over    Not Over      1st    2nd    3rd    4th    5th
$18,500    19,000         3      8     11     13     16
 19,000    19,500         4      9     13     15     18
 19,500    20,000         4     10     15     17     20
 20,000    20,500         5     11     16     19     23
 20,500    21,000         5     12     18     21     25
 21,000    21,500         6     13     19     24     26
 21,500    22,000         6     14     21     26     29
 22,000    23,000         7     16     23     29     32
 23,000    24,000         8     18     27     32     37
 24,000    25,000         9     20     30     36     42
 25,000    26,000        10     23     33     40     46
 26,000    27,000        11     25     36     44     51
 27,000    28,000        12     27     40     48     55
 28,000    29,000        13     29     43     52     60
 29,000    30,000        14     31     47     55     65
 30,000    31,000        15     34     49     60     69
 31,000    32,000        16     36     53     63     73
 32,000    33,000        17     38     56     68     77
 33,000    34,000        18     40     60     71     82
 34,000    35,000        19     42     63     75     87
 35,000    36,000        20     45     66     79     91
 36,000    37,000        21     47     69     83     96
 37,000    38,000        22     49     73     87    100
 38,000    39,000        23     51     76     91    105
 39,000    40,000        24     53     80     94    110
 40,000    41,000        25     56     82     99    114
 41,000    42,000        26     58     86    102    119
 42,000    43,000        27     60     89    107    123
 43,000    44,000        28     62     93    110    128
 44,000    45,000        29     64     96    114    133
 45,000    46,000        30     67     98    119    137
 46,000    47,000        31     69    102    122    141
 47,000    48,000        32     71    105    127    145
 48,000    49,000        33     73    109    130    150
 49,000    50,000        34     76    111    134    155
 50,000    51,000        35     78    115    138    159
 51,000    52,000        36     80    118    142    164
 52,000    53,000        37     82    122    146    168
 53,000    54,000        38     84    125    150    173
 54,000    55,000        39     87    128    153    178
 55,000    56,000        40     89    131    158    182
 56,000    57,000        41     91    135    161    187
 57,000    58,000        42     93    138    166    191
 58,000    59,000        43     95    142    169    196
 59,000    60,000        44     98    144    174    200
 60,000    62,000        46    101    149    179    207
 62,000    64,000        48    105    156    187    216
 64,000    66,000        50    109    163    195    225
 66,000    68,000        52    114    169    203    234
 68,000    70,000        54    118    176    211    243 
 70,000    72,000        56    123    182    218    253
 72,000    74,000        58    127    189    226    262
 74,000    76,000        60    132    195    234    270 
 76,000    78,000        62    136    202    242    279
 78,000    80,000        64    140    209    250    288
 80,000    85,000        67    148    220    264    304
 85,000    90,000        72    159    237    283    327
 90,000    95,000        77    170    253    303    350
 95,000   100,000        82    181    269    323    372
100,000   110,000        90    198    293    352    406
110,000   120,000       100    220    326    391    452

Example--On January 1, 2011 your business enters into a lease for an auto with a fair market value of $51,500. Your annual payments are $7,188. For 2011 the business can only deduct $7,152 ($7,188 less $36, from the table above). (For 2012, you can only deduct $7,108, $7,188 less $80.) If the car is used less than 100% for business, you cannot deduct any lease payments related to the nonbusiness portion. But you also reduce the annual inclusion amount by the personal usage. For example, if the car above were used only 70% for business in 2011, you could only deduct $5,007 ($5,032 less $25; both amounts are multiplied by 0.7). Prorate amounts for vehicles first leased after January 1 of the year. Note. Most tax preparation software will make the adjustment when you enter the lease inclusion amount for the year.

 

Inclusion Amounts for Trucks and Vans First Leased in 2011

Notes--



Fair Market Value            Tax Year of Lease
  Over    Not Over       1st   2nd    3rd    4th    5th
$19,000    19,500          3     7      9     12     13
 19,500    20,000          3     8     11     14     15
 20,000    20,500          4     9     13     15     18
 20,500    21,000          4    10     15     17     20
 21,000    21,500          5    11     16     20     22
 21,500    22,000          5    12     18     22     24
 22,000    23,000          6    14     20     24     29
 23,000    24,000          7    16     24     28     32
 24,000    25,000          8    18     27     32     37
 25,000    26,000          9    20     31     36     41
 26,000    27,000         10    23     33     40     46
 27,000    28,000         11    25     37     43     51
 28,000    29,000         12    27     40     48     55
 29,000    30,000         13    29     43     52     60
 30,000    31,000         14    31     47     56     64
 31,000    32,000         15    34     49     60     69
 32,000    33,000         16    36     53     63     74
 33,000    34,000         17    38     56     68     78
 34,000    35,000         18    40     60     71     83
 35,000    36,000         19    43     62     76     87
 36,000    37,000         20    45     66     79     92
 37,000    38,000         21    47     69     83     97
 38,000    39,000         22    49     73     87    101 
 39,000    40,000         23    51     76     91    105
 40,000    41,000         24    54     79     95    109
 41,000    42,000         25    56     82     99    114
 42,000    43,000         26    58     86    103    118
 43,000    44,000         27    60     89    107    123
 44,000    45,000         28    62     93    110    128
 45,000    46,000         29    65     95    115    132
 46,000    47,000         30    67     99    118    137
 47,000    48,000         31    69    102    123    141
 48,000    49,000         32    71    106    126    146
 49,000    50,000         33    73    109    130    151
 50,000    51,000         34    76    112    134    155
 51,000    52,000         35    78    115    138    160
 52,000    53,000         36    80    118    143    164
 53,000    54,000         37    82    122    146    169
 54,000    55,000         38    84    125    150    173
 55,000    56,000         39    87    128    154    177
 56,000    57,000         40    89    131    158    182
 57,000    58,000         41    91    135    162    186
 58,000    59,000         42    93    138    166    191
 59,000    60,000         43    95    142    169    196
 60,000    62,000         45    99    146    175    203
 62,000    64,000         47   103    153    183    212
 64,000    66,000         49   107    160    191    221
 66,000    68,000         51   112    166    199    229
 68,000    70,000         53   116    173    206    239
 70,000    72,000         55   121    179    214    248 
 72,000    74,000         57   125    186    222    257
 74,000    76,000         59   129    192    231    266
 76,000    78,000         61   134    198    239    275
 78,000    80,000         63   138    205    246    285
 
Inclusion Amounts for Autos First Leased in 2010

Notes--

Fair Market Value            Tax Year of Lease
  Over    Not Over      1st    2nd    3rd    4th    5th
$18,500    19,000         7     15     22     26     31
 19,000    19,500         8     17     25     30     35
 19,500    20,000         9     19     29     34     39
 20,000    20,500        10     21     32     38     44
 20,500    21,000        11     23     35     42     48
 21,000    21,500        12     26     38     45     53
 21,500    22,000        13     28     41     50     57
 22,000    23,000        14     31     46     56     63
 23,000    24,000        16     36     52     63     73
 24,000    25,000        18     40     59     71     81
 25,000    26,000        20     44     66     78     90
 26,000    27,000        22     49     71     86    100
 27,000    28,000        24     53     78     94    108
 28,000    29,000        26     57     85    101    118
 29,000    30,000        28     61     92    109    126
 30,000    31,000        30     66     97    117    135
 31,000    32,000        32     70    104    125    144
 32,000    33,000        34     74    111    132    153
 33,000    34,000        36     79    117    140    161
 34,000    35,000        38     83    123    148    171
 35,000    36,000        40     87    130    156    179
 36,000    37,000        42     92    136    163    188
 37,000    38,000        44     96    143    170    198
 38,000    39,000        46    100    149    179    206
 39,000    40,000        48    105    155    186    215
 40,000    41,000        50    109    162    194    224
 41,000    42,000        52    113    169    201    233
 42,000    43,000        54    118    174    210    241
 43,000    44,000        56    122    181    217    251
 44,000    45,000        58    126    188    225    259
 45,000    46,000        60    131    194    232    269
 46,000    47,000        61    135    201    240    277
 47,000    48,000        63    140    207    248    286
 48,000    49,000        65    144    213    256    295
 49,000    50,000        67    148    220    263    304
 50,000    51,000        69    153    226    271    313
 51,000    52,000        71    157    232    279    322
 52,000    53,000        73    161    239    287    331
 53,000    54,000        75    166    245    294    340
 54,000    55,000        77    170    252    302    348
 55,000    56,000        79    174    258    310    358
 56,000    57,000        81    178    265    318    366
 57,000    58,000        83    183    271    325    375
 58,000    59,000        85    187    278    333    384
 59,000    60,000        87    191    284    341    393
 60,000    62,000        90    198    294    352    406
 62,000    64,000        94    207    306    368    424
 64,000    66,000        98    215    320    382    443
 66,000    68,000       102    224    332    398    460
 68,000    70,000       106    232    346    413    478 
 70,000    72,000       110    241    358    429    496
 72,000    74,000       114    250    371    444    513
 74,000    76,000       118    258    384    460    531 
 76,000    78,000       122    267    396    476    549
 78,000    80,000       126    276    409    491    566
 80,000    85,000       132    291    432    518    598
 85,000    90,000       142    313    464    556    643
 90,000    95,000       152    334    497    594    687
 95,000   100,000       162    356    528    634    731
100,000   110,000       177    388    577    691    798
110,000   120,000       196    432    641    768    887

Example--On January 1, 2010 your business enters into a lease for an auto with a fair market value of $51,500. Your annual payments are $7,188. For 2010 the business can only deduct $7,117 ($7,188 less $71). (For 2011, you can only deduct $7,031, $7,188 less $157.) If the car is used less than 100% for business, you cannot deduct any lease payments related to the nonbusiness portion. But you also reduce the annual inclusion amount by the personal usage. For example, if the car above were used only 70% for business in 2010, you could only deduct $4,982 ($5,032 less $50; both amounts are multiplied by 0.7). Prorate amounts for vehicles first leased after January 1 of the year. Note. Most tax preparation software will make the adjustment when you enter the lease inclusion amount for the year.

 

Inclusion Amounts for Trucks and Vans First Leased in 2010

Notes--



Fair Market Value            Tax Year of Lease
  Over    Not Over       1st   2nd    3rd    4th    5th
$19,000    19,500          7    15     21     26     29
 19,500    20,000          8    17     25     29     34
 20,000    20,500          9    19     28     33     38
 20,500    21,000         10    21     31     37     43
 21,000    21,500         11    23     35     41     47
 21,500    22,000         12    25     38     45     51
 22,000    23,000         13    29     42     51     58
 23,000    24,000         15    33     49     58     67
 24,000    25,000         17    37     56     66     76
 25,000    26,000         19    42     62     73     85
 26,000    27,000         21    46     68     82     93
 27,000    28,000         23    50     75     89    103
 28,000    29,000         25    55     81     97    111
 29,000    30,000         27    59     88    104    121
 30,000    31,000         29    63     94    113    129
 31,000    32,000         31    68    100    120    138
 32,000    33,000         33    72    107    127    148
 33,000    34,000         35    76    114    135    156
 34,000    35,000         37    81    119    143    165
 35,000    36,000         39    85    126    151    174
 36,000    37,000         41    89    133    158    183
 37,000    38,000         43    94    139    166    191
 38,000    39,000         45    98    145    174    201 
 39,000    40,000         47   102    152    182    209
 40,000    41,000         49   106    159    189    218
 41,000    42,000         51   111    164    198    227
 42,000    43,000         53   115    171    205    236
 43,000    44,000         55   119    178    213    245
 44,000    45,000         57   124    184    220    254
 45,000    46,000         59   128    190    228    263
 46,000    47,000         60   133    197    235    272
 47,000    48,000         62   137    203    244    280
 48,000    49,000         64   142    209    251    290
 49,000    50,000         66   146    216    259    298
 50,000    51,000         68   150    223    266    308
 51,000    52,000         70   154    229    275    316
 52,000    53,000         72   159    235    282    325
 53,000    54,000         74   163    242    290    334
 54,000    55,000         76   167    249    297    343
 55,000    56,000         78   172    254    305    352
 56,000    57,000         80   176    261    313    361
 57,000    58,000         82   180    268    320    370
 58,000    59,000         84   185    274    328    378
 59,000    60,000         86   189    280    336    388
 60,000    62,000         89   195    291    347    401
 62,000    64,000         93   204    303    363    418
 64,000    66,000         97   213    315    379    436
 66,000    68,000        101   221    329    394    454
 68,000    70,000        105   230    341    410    472
 70,000    72,000        109   239    354    424    490 
 72,000    74,000        113   247    367    440    508
 74,000    76,000        117   256    380    455    526
 76,000    78,000        121   264    393    471    543
 78,000    80,000        125   273    406    486    561
 
 


Copyright 2009-2016 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The information is not necessarily a complete summary of all materials on the subject.--ISSN 1089-1536


 

--Last update 11/15/16

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