Small Business Taxes & ManagementTM--Copyright 1998-2013, A/N Group, Inc.
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.
2013 2012 2011 2010 2009 2008 2007
Business mileage (cents per mile) 56.5 55.5 51# 50 55 50.5* 48.5
Charitable mileage 14 14 14 14 14 14 14
Medical mileage 24 23 19# 16.5 24 19* 20
Moving mileage 24 23 19# 16.5 24 19* 20
#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.*From January 1 through June 30, 2008 the business rate is 50.5 cents/mile; from July 1 through December 31, 2008 the rate is 58.5 cents/mile. For medical and moving purposes the rate is 19 cents/mile for January 1 through June 30, 2008 and 27 cents/mile from July 1 through December 31, 2008.
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.
Year Auto Max. Value Truck/Van Max. Value
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
2007 15,100 16,100
2006 15,000 16,400
2005 14,800 16,300
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 2012-2013 23 cents per mile 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 1989-1991 11 1988 10.5Example--You purchased a car in 2007 and use the car for business purposes 10,000 miles per year for business in 2007, 2008, 2009, 2010, 2011 and 2012. You sell the car on January 1, 2013. You've got to reduce your cost basis by $12,900 (10,000 x 0.19 for 2007, 10,000 x 0.21 for 2008 and 2009, 0.23 x 10,000 for 2010, 0.22 x 10,000 for 2011 and 0.23 x 10,000 for 2012). 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 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). (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 $3,360 $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.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 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). (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 $3,360 $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.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 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. (Special tables, not reproduced here, apply to pure electric vehicles.)
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
Example: You purchased a new car in June 2011 for $41,000. No matter how expensive the vehicle, your maximum depreciation in the first year (2011) is $11,060. You would take $4,900 of depreciation in 2012; $2,950 in 2013; and $1,775 in 2014 and subsequent years until the car is fully depreciated. Thus, a $41,000 car would take about 15 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.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 2010
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 2010 all new assets qualify for the 50% bonus depreciation. Note, vehicles purchased after September 8, 2010 qualify for 100% bonus depreciation. (Special tables, not reproduced here, apply to pure electric vehicles.)
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 $3,160 $11,160
Second 5,100 5,100
Third 3,050 3,050
Subsequent 1,875 1,875
Example: You purchased a new car in June 2010 for $41,000. No matter how expensive the vehicle, your maximum depreciation in the first year (2010) is $11,060. You would take $4,900 of depreciation in 2011; $2,950 in 2012; and $1,775 in 2013 and subsequent years until the car is fully depreciated. Thus, a $41,000 car would take about 15 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.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 2009
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 2009 all new assets qualify for the 50% additional depreciation. (Special tables, not reproduced here, apply to pure electric vehicles.)
Depreciation Limits for Passenger Automobiles
Tax Year Standard 50% Additional
First $2,960 $10,960
Second 4,800 4,800
Third 2,850 2,850
Subsequent 1,775 1,775
Depreciation Limits for Trucks and Vans
Tax Year Standard 50% Additional
First $3,060 $11,060
Second 4,900 4,900
Third 2,950 2,950
Subsequent 1,775 1,775
Example: You purchased a new car in June 2009. You take the full 50% additional depreciation. No matter how expensive the vehicle, your maximum depreciation in the first year (2009) is $10,960. You would take $4,800 of depreciation in 2010; $2,850 in 2011; and $1,775 in 2012 and subsequent years until the car is fully depreciated. Thus, a $31,000 car would take about 10 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.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.
Depreciation Limits for Cars and Trucks 2008
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 2008 all new assets qualify for the 50% additional depreciation. (Special tables, not reproduced here, apply to pure electric vehicles.)
Depreciation Limits for Passenger Automobiles
Tax Year Standard 50% Additional
First $2,960 $10,960
Second 4,800 4,800
Third 2,850 2,850
Subsequent 1,775 1,775
Depreciation Limits for Trucks and Vans
Tax Year Standard 50% Additional
First $3,160 $11,160
Second 5,100 5,100
Third 3,050 3,050
Subsequent 1,875 1,875
Depreciation Limits for Cars and Trucks 2007Depreciation on cars and light trucks and vans is limited. For 2003 and later years, the IRS has created two different limits--one for cars and one for trucks. (Special tables, not reproduced here, apply to pure electric vehicles.)
Depreciation Limits
Passenger Automobiles Trucks and Vans
Tax Year
First $3,060 $3,260
Second 4,900 5,200
Third 2,850 3,050
Subsequent 1,775 1,875
Depreciation Limits for Cars and Trucks 2006Depreciation on cars and light trucks and vans is limited. For 2003 and later years, the IRS has created two different limits--one for cars and one for trucks. (Special tables, not reproduced here, apply to pure electric vehicles.)
Depreciation Limits
Passenger Automobiles Trucks and Vans
Tax Year
First $2,960 $3,260
Second 4,800 5,200
Third 2,850 3,150
Subsequent 1,775 1,875
Depreciation Limits for Cars and Trucks 1995-2005The maximum depreciation for autos and trucks and vans for the fourth and subsequent years of ownership for the years 1995-2005 are:
Depreciation Limits Fourth and Subsequent Years
Year Placed in Service Autos Trucks and Vans
2005 $1,675 $1,875
2004 1,675 1,875
2003 1,775 1,975
1995-2002 1,775 1,775
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 ValueFor 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 $500 to the result.$ 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
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 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 241Example--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 262Example--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 452Example--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 285Inclusion 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 887Example--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 561Inclusion Amounts for Autos First Leased in 2009
Notes--
Fair Market Value Tax Year of Lease Over Not Over 1st 2nd 3rd 4th 5th $18,500 $19,000 9 19 28 34 38 19,000 19,500 10 21 32 38 43 19,500 20,000 11 24 36 42 48 20,000 20,500 12 27 39 46 54 20,500 21,000 13 29 43 51 58 21,000 21,500 15 31 47 55 64 21,500 22,000 16 34 50 60 68 22,000 23,000 17 38 56 66 76 23,000 24,000 20 42 64 75 86 24,000 25,000 22 47 71 84 96 25,000 26,000 24 52 78 93 107 26,000 27,000 26 58 85 101 117 27,000 28,000 29 62 93 110 127 28,000 29,000 31 67 100 119 138 29,000 30,000 33 72 108 128 147 30,000 31,000 35 77 115 137 157 31,000 32,000 38 82 122 146 167 32,000 33,000 40 87 129 155 178 33,000 34,000 42 92 137 163 188 34,000 35,000 44 97 144 172 199 35,000 36,000 47 102 151 181 208 36,000 37,000 49 107 159 189 219 37,000 38,000 51 112 166 199 228 38,000 39,000 53 117 173 208 239 39,000 40,000 56 122 180 216 250 40,000 41,000 58 127 188 225 259 41,000 42,000 60 132 195 234 269 42,000 43,000 62 137 203 242 280 43,000 44,000 65 141 210 252 290 44,000 45,000 67 146 218 260 300 45,000 46,000 69 151 225 269 311 46,000 47,000 71 157 232 278 320 47,000 48,000 74 161 240 286 331 48,000 49,000 76 166 247 296 340 49,000 50,000 78 171 255 304 351 50,000 51,000 80 176 262 313 361 51,000 52,000 83 181 269 322 371 52,000 53,000 85 186 276 331 381 53,000 54,000 87 191 284 339 391 54,000 55,000 89 196 291 349 401 55,000 56,000 92 201 298 357 412 56,000 57,000 94 206 306 365 423 57,000 58,000 96 211 313 375 432 58,000 59,000 98 216 320 384 442 59,000 60,000 101 221 327 393 452 60,000 62,000 104 228 339 406 467 62,000 64,000 109 238 353 424 488 64,000 66,000 113 248 368 441 509 66,000 68,000 118 258 382 459 529 68,000 70,000 122 268 397 476 550 70,000 72,000 127 277 413 493 570 72,000 74,000 131 288 427 511 590 74,000 76,000 136 297 442 529 610 76,000 78,000 140 207 457 546 631 78,000 80,000 145 317 471 564 651 80,000 85,000 152 335 497 595 686 85,000 90,000 164 359 534 639 737 90,000 95,000 175 384 570 683 789 95,000 100,000 186 409 607 727 839 100,000 110,000 203 446 662 793 916 110,000 120,000 226 495 736 881 1,018Example--On January 1, 2009 your business enters into a lease for an auto with a fair market value of $51,500. Your annual payments are $7,188. For 2009 the business can only deduct $7,105 ($7,188 less $83). (For 2009, you can only deduct $7,007, $7,188 less $181.) 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 2009, you could only deduct $4,974 ($5,032 less $58; both amounts are multiplied by 0.7). Prorate amounts for vehicles first leased after January 1 of the year. Note. Most software programs will make the adjustment when you enter the lease inclusion amount for the year.
Inclusion Amounts for Trucks and Vans First Leased in 2009
Notes--
Fair Market Value Tax Year of Lease Over Not Over 1st 2nd 3rd 4th 5th $18,500 19,000 8 17 25 30 35 19,000 19,500 9 19 29 35 40 19,500 20,000 10 22 33 38 45 20,000 20,500 11 25 36 43 50 20,500 21,000 12 27 40 48 55 21,000 21,500 13 30 43 52 60 21,500 22,000 15 32 47 56 66 22,000 23,000 16 36 52 64 72 23,000 24,000 18 41 60 72 83 24,000 25,000 21 45 68 81 93 25,000 26,000 23 50 75 90 103 26,000 27,000 25 56 82 98 114 27,000 28,000 27 61 89 107 124 28,000 29,000 30 65 97 116 134 29,000 30,000 32 70 104 125 144 30,000 31,000 34 75 112 134 154 31,000 32,000 36 80 119 143 164 32,000 33,000 39 85 126 151 175 33,000 34,000 41 90 134 160 184 34,000 35,000 43 95 141 169 195 35,000 36,000 45 100 148 178 205 36,000 37,000 48 105 155 187 215 37,000 38,000 50 110 163 195 226 38,000 39,000 52 115 170 204 236 39,000 40,000 55 120 177 213 246 40,000 41,000 57 125 185 221 256 41,000 42,000 59 130 192 231 266 42,000 43,000 61 135 199 240 276 43,000 44,000 64 139 207 249 286 44,000 45,000 66 144 215 257 296 45,000 46,000 68 149 222 266 307 46,000 47,000 70 155 229 274 317 47,000 48,000 73 159 237 283 327 48,000 49,000 75 164 244 292 338 49,000 50,000 77 169 251 301 348 50,000 51,000 79 174 259 310 357 51,000 52,000 82 179 266 318 368 52,000 53,000 84 184 273 328 378 53,000 54,000 86 189 281 336 388 54,000 55,000 88 194 288 345 399 55,000 56,000 91 199 295 354 408 56,000 57,000 93 204 302 363 419 57,000 58,000 95 209 310 371 429 58,000 59,000 97 214 317 381 439 59,000 60,000 100 219 324 389 450 60,000 62,000 103 226 336 402 465 62,000 64,000 107 236 351 420 485 64,000 66,000 112 246 365 438 505 66,000 68,000 116 256 380 455 526 68,000 70,000 121 266 394 473 546 70,000 72,000 125 276 409 491 566 72,000 74,000 130 286 423 509 586 74,000 76,000 134 296 438 526 607 76,000 78,000 139 305 454 543 627 78,000 80,000 143 316 467 561 648Inclusion Amounts for Autos First Leased in 2008
Notes--
Fair Market Value Tax Year of Lease Over Not Over 1st 2nd 3rd 4th 5th $18,500 $19,000 20 42 62 73 84 19,000 19,500 22 47 71 83 94 19,500 20,000 25 53 78 93 106 20,000 20,500 27 58 87 102 117 20,500 21,000 30 63 95 112 128 21,000 21,500 32 69 103 122 139 21,500 22,000 34 75 111 131 151 22,000 23,000 38 83 123 146 167 23,000 24,000 43 94 139 165 190 24,000 25,000 48 105 155 185 212 25,000 26,000 53 115 172 204 235 26,000 27,000 58 126 188 223 257 27,000 28,000 63 137 204 243 279 28,000 29,000 68 148 220 262 302 29,000 30,000 73 159 236 282 324 30,000 31,000 78 170 252 301 347 31,000 32,000 83 181 268 321 368 32,000 33,000 88 192 284 340 391 33,000 34,000 93 202 301 359 414 34,000 35,000 98 213 317 379 436 35,000 36,000 103 224 333 398 459 36,000 37,000 108 235 349 418 481 37,000 38,000 113 246 365 437 503 38,000 39,000 118 257 381 457 525 39,000 40,000 123 268 397 476 548 40,000 41,000 128 279 413 495 571 41,000 42,000 133 289 430 515 593 42,000 43,000 137 301 446 534 615 43,000 44,000 142 312 462 553 638 44,000 45,000 147 323 478 573 659 45,000 46,000 152 333 495 592 682 46,000 47,000 157 344 511 611 705 47,000 48,000 162 355 527 631 727 48,000 49,000 167 366 543 650 750 49,000 50,000 172 377 559 670 772 50,000 51,000 177 388 575 689 794 51,000 52,000 182 399 591 709 816 52,000 53,000 187 410 607 728 839 53,000 54,000 192 420 624 747 862 54,000 55,000 197 431 640 767 884 55,000 56,000 202 442 657 785 906 56,000 57,000 207 453 673 805 928 57,000 58,000 212 464 689 824 951 58,000 59,000 217 475 705 844 973 59,000 60,000 222 486 721 863 996 60,000 62,000 229 502 746 892 1,029 62,000 64,000 239 524 778 931 1,074 64,000 66,000 249 546 810 970 1,118 66,000 68,000 259 567 843 1,008 1,164 68,000 70,000 269 589 875 1,047 1,209 70,000 72,000 279 611 907 1,086 1,253 72,000 74,000 289 633 939 1,125 1,298 74,000 76,000 299 654 972 1,164 1,342 76,000 78,000 309 676 1,004 1,203 1,387 78,000 80,000 319 698 1,036 1,242 1,432 80,000 85,000 336 736 1,093 1,309 1,511 85,000 90,000 361 791 1,173 1,406 1,623 90,000 95,000 386 845 1,255 1,503 1,734 95,000 100,000 410 900 1,335 1,600 1,846 100,000 110,000 448 981 1,457 1,745 2,014 110,000 120,000 497 1,090 1,619 1,939 2,238Example--On January 1, 2008 your business enters into a lease for an auto with a fair market value of $51,500. Your annual payments are $7,188. For 2008 the business can only deduct $7,006 ($7,188 less $182). (For 2009, you can only deduct $6,789, $7,188 less $399.) 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 2008, you could only deduct $4,905 ($5,032 less $127; both amounts are multiplied by 0.7). Prorate amounts for vehicles first leased after January 1 of the year.
Inclusion Amounts for Trucks and Vans First Leased in 2008
Notes--
Fair Market Value Tax Year of Lease Over Not Over 1st 2nd 3rd 4th 5th $19,000 19,500 17 37 54 65 73 19,500 20,000 20 42 63 73 85 20,000 20,500 22 48 70 84 96 20,500 21,000 25 53 79 93 107 21,000 21,500 27 59 86 103 118 21,500 22,000 30 64 95 112 130 22,000 23,000 33 72 107 128 146 23,000 24,000 38 83 123 147 168 24,000 25,000 43 94 139 166 191 25,000 26,000 48 105 155 186 213 26,000 27,000 53 116 171 205 236 27,000 28,000 58 127 187 225 258 28,000 29,000 63 138 204 243 280 29,000 30,000 68 148 221 263 302 30,000 31,000 73 159 237 282 325 31,000 32,000 78 170 253 301 348 32,000 33,000 83 181 269 321 370 33,000 34,000 88 192 285 340 393 34,000 35,000 93 203 301 360 414 35,000 36,000 98 214 317 379 437 36,000 37,000 103 225 333 399 459 37,000 38,000 108 235 350 418 482 38,000 39,000 113 246 366 437 505 39,000 40,000 118 257 382 457 526 40,000 41,000 123 268 398 476 549 41,000 42,000 128 279 414 496 571 42,000 43,000 133 290 430 515 594 43,000 44,000 137 301 447 534 616 44,000 45,000 142 312 463 553 639 45,000 46,000 147 323 479 573 661 46,000 47,000 152 334 495 592 684 47,000 48,000 157 345 511 612 705 48,000 49,000 162 356 527 631 728 49,000 50,000 167 366 544 651 750 50,000 51,000 172 377 560 670 773 51,000 52,000 177 388 576 689 796 52,000 53,000 182 399 592 709 817 53,000 54,000 187 410 608 728 840 54,000 55,000 192 421 624 748 862 55,000 56,000 197 432 640 767 885 56,000 57,000 202 443 656 787 907 57,000 58,000 207 453 673 806 929 58,000 59,000 212 464 689 825 952 59,000 60,000 217 475 705 845 974 60,000 62,000 224 492 729 874 1,008 62,000 64,000 234 513 762 913 1,052 64,000 66,000 244 535 794 951 1,098 66,000 68,000 254 557 826 990 1,142 68,000 70,000 264 579 858 1,029 1,187 70,000 72,000 274 600 892 1,067 1,232 72,000 74,000 284 622 924 1,106 1,276 74,000 76,000 294 644 956 1,145 1,321 76,000 78,000 304 666 988 1,184 1,366 78,000 80,000 314 687 1,021 1,222 1,411Inclusion Amounts for Autos First Leased in 2007
Notes--
Fair Market Value Tax Year of Lease
Over Not Over 1st 2nd 3rd 4th 5th
$15,500 $15,800 2 5 11 11 13
15,800 16,100 4 10 17 19 22
16,100 16,400 6 14 24 28 31
16,400 16,700 9 18 31 35 41
16,700 17,000 11 23 37 43 50
17,000 17,500 13 29 46 54 62
17,500 18,000 17 37 56 68 77
18,000 18,500 20 44 68 81 93
18,500 19,000 24 51 80 94 108
19,000 19,500 27 59 90 108 124
19,500 20,000 30 67 101 121 139
20,000 20,500 34 74 113 134 154
20,500 21,000 37 82 123 148 170
21,000 21,500 41 89 135 161 185
21,500 22,000 44 97 146 174 201
22,000 23,000 49 108 163 194 224
23,000 24,000 56 123 185 221 255
24,000 25,000 63 138 207 248 285
25,000 26,000 70 153 229 275 316
26,000 27,000 77 168 251 302 347
27,000 28,000 83 183 274 328 378
28,000 29,000 90 198 296 355 409
29,000 30,000 97 213 318 382 439
30,000 31,000 104 228 341 408 470
31,000 32,000 111 243 363 435 501
32,000 33,000 118 258 385 461 532
33,000 34,000 125 273 407 488 563
34,000 35,000 131 288 430 515 593
35,000 36,000 138 303 452 542 624
36,000 37,000 145 318 474 568 656
37,000 38,000 152 333 496 595 686
38,000 39,000 159 348 519 621 717
39,000 40,000 166 363 541 648 748
40,000 41,000 172 378 564 674 779
41,000 42,000 179 393 586 701 810
42,000 43,000 186 408 608 728 840
43,000 44,000 193 423 630 755 871
44,000 45,000 200 438 652 782 902
45,000 46,000 207 453 674 809 933
46,000 47,000 213 468 697 835 964
47,000 48,000 220 483 719 862 995
48,000 49,000 227 498 742 888 1,025
49,000 50,000 234 513 746 915 1,056
50,000 51,000 241 528 786 942 1,087
51,000 52,000 248 543 808 969 1,117
52,000 53,000 254 558 831 995 1,148
53,000 54,000 261 573 853 1,022 1,179
54,000 55,000 268 588 875 1,049 1,210
55,000 56,000 275 603 897 1,076 1,241
56,000 57,000 282 618 920 1,102 1,271
57,000 58,000 289 633 942 1,128 1,303
58,000 59,000 296 648 964 1,155 1,334
59,000 60,000 302 663 987 1,182 1,364
60,000 62,000 313 685 1,020 1,222 1,411
62,000 64,000 326 716 1,064 1,276 1,472
64,000 66,000 340 746 1,108 1,329 1,534
66,000 68,000 354 775 1,154 1,382 1,595
68,000 70,000 367 806 1,198 1,435 1,657
70,000 72,000 381 836 1,242 1,489 1,719
72,000 74,000 395 865 1,287 1,543 1,780
74,000 76,000 408 896 1,331 1,596 1,842
76,000 78,000 422 926 1,376 1,649 1,903
78,000 80,000 436 955 1,421 1,703 1,965
80,000 85,000 460 1,008 1,498 1,796 2,074
85,000 90,000 494 1,083 1,610 1,929 2,228
90,000 95,000 528 1,158 1,721 2,063 2,382
95,000 100,000 562 1,233 1,833 2,196 2,536
100,000 110,000 614 1,346 1,999 2,396 2,767
110,000 120,000 682 1,496 2,222 2,663 3,075
Example--On January 1, 2007 your business enters into a lease for an auto with a fair market value of $51,500. Your annual payments are $7,188. For 2007 the business can only deduct $6,940 ($7,188 less $248). (For 2008, you can only deduct $6,645, $7,188 less $543.) 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 2007, you could only deduct $4,858 ($5,032 less $174; both amounts are multiplied by 0.7). Prorate amounts for vehicles first leased after January 1 of the year.
Inclusion Amounts for Trucks and Vans First Leased in 2007
Notes--
Fair Market Value Tax Year of Lease Over Not Over 1st 2nd 3rd 4th 5th $16,400 $16,700 2 4 8 10 11 16,700 17,000 4 9 15 17 21 17,000 17,500 6 15 24 28 33 17,500 18,000 10 22 35 42 48 18,000 18,500 13 30 46 55 64 18,500 19,000 17 37 57 69 79 19,000 19,500 20 45 68 82 94 19,500 20,000 24 52 80 95 109 20,000 20,500 27 60 90 109 125 20,500 21,000 30 67 102 122 141 21,000 21,500 34 75 113 135 156 21,500 22,000 37 82 124 149 171 22,000 23,000 42 94 140 169 194 23,000 24,000 49 109 163 195 225 24,000 25,000 56 123 186 222 256 25,000 26,000 63 138 208 249 286 26,000 27,000 70 153 230 276 317 27,000 28,000 77 168 252 302 349 28,000 29,000 83 184 274 329 379 29,000 30,000 90 199 296 356 410 30,000 31,000 97 214 318 383 440 31,000 32,000 104 228 342 408 472 32,000 33,000 111 243 364 435 503 33,000 34,000 118 258 386 462 534 34,000 35,000 125 273 408 489 564 35,000 36,000 131 289 430 515 595 36,000 37,000 138 304 452 542 626 37,000 38,000 145 318 475 569 657 38,000 39,000 152 333 497 596 688 39,000 40,000 159 348 520 622 718 40,000 41,000 166 363 542 649 749 41,000 42,000 172 379 563 676 780 42,000 43,000 179 394 586 702 811 43,000 44,000 186 409 608 729 842 44,000 45,000 193 423 631 756 872 45,000 46,000 200 438 653 783 903 46,000 47,000 207 453 675 810 934 47,000 48,000 213 469 697 836 965 48,000 49,000 220 484 719 863 996 49,000 50,000 227 499 741 890 1,026 50,000 51,000 234 514 764 916 1,057 51,000 52,000 241 528 787 943 1,088 52,000 53,000 248 543 809 969 1,119 53,000 54,000 254 559 831 996 1,150 54,000 55,000 261 574 853 1,023 1,180 55,000 56,000 268 589 875 1,050 1,211 56,000 57,000 275 604 897 1,076 1,243 57,000 58,000 282 618 920 1,103 1,273 58,000 59,000 289 633 943 1,129 1,304 59,000 60,000 296 648 965 1,156 1,335 60,000 62,000 306 671 998 1,196 1,381 62,000 64,000 319 701 1,043 1,249 1,443 64,000 66,000 333 731 1,087 1,303 1,504 66,000 68,000 347 761 1,131 1,357 1,566 68,000 70,000 361 791 1,176 1,410 1,627 70,000 72,000 374 821 1,221 1,463 1,689 72,000 74,000 388 851 1,265 1,517 1,751 74,000 76,000 402 881 1,309 1,570 1,813 76,000 78,000 415 911 1,354 1,624 1,874 78,000 80,000 429 941 1,399 1,676 1,936Inclusion Amounts for Autos First Leased in 2006
Notes--
Fair Market Value Tax Year of Lease
Over Not Over 1st 2nd 3rd 4th 5th
$15,200 $15,500 4 6 10 10 10
15,500 15,800 6 10 16 18 18
15,800 16,100 8 15 22 25 28
16,100 16,400 9 19 29 33 36
16,400 16,700 11 24 35 40 45
16,700 17,000 13 28 42 48 53
17,000 17,500 16 34 50 58 66
17,500 18,000 19 41 61 71 80
18,000 18,500 23 48 71 84 95
18,500 19,000 26 55 82 96 110
19,000 19,500 29 62 93 109 125
19,500 20,000 32 70 103 122 139
20,000 20,500 36 76 114 135 154
20,500 21,000 39 84 124 148 168
21,000 21,500 42 91 135 160 184
21,500 22,000 45 98 146 173 198
22,000 23,000 50 109 162 192 220
23,000 24,000 57 123 183 218 250
24,000 25,000 63 138 204 243 279
25,000 26,000 70 152 225 269 309
26,000 27,000 76 166 247 294 339
27,000 28,000 83 181 268 319 368
28,000 29,000 90 195 289 345 397
29,000 30,000 96 209 311 371 426
30,000 31,000 103 223 332 397 455
31,000 32,000 109 238 353 422 485
32,000 33,000 116 252 374 448 515
33,000 34,000 122 267 395 473 545
34,000 35,000 129 281 417 498 574
35,000 36,000 135 295 439 523 604
36,000 37,000 142 309 460 549 633
37,000 38,000 148 324 481 575 662
38,000 39,000 155 338 502 601 691
39,000 40,000 161 353 523 626 721
40,000 41,000 168 367 545 651 750
41,000 42,000 175 381 566 677 780
42,000 43,000 181 396 587 702 810
43,000 44,000 188 410 608 728 839
44,000 45,000 194 424 630 753 869
45,000 46,000 201 438 651 779 898
46,000 47,000 207 453 672 805 927
47,000 48,000 214 467 694 830 956
48,000 49,000 220 482 715 855 986
49,000 50,000 227 496 736 881 1,016
50,000 51,000 233 510 758 906 1,045
51,000 52,000 240 525 778 932 1,075
52,000 53,000 246 539 800 958 1,104
53,000 54,000 253 553 821 984 1,133
54,000 55,000 259 568 842 1,009 1,163
55,000 56,000 266 582 864 1,034 1,192
56,000 57,000 273 596 885 1,060 1,221
57,000 58,000 279 611 906 1,085 1,251
58,000 59,000 286 625 927 1,111 1,281
59,000 60,000 292 639 949 1,136 1,311
60,000 62,000 302 661 981 1,174 1,354
62,000 64,000 315 690 1,023 1,225 1,413
64,000 66,000 328 718 1,066 1,276 1,473
66,000 68,000 341 747 1,108 1,328 1,531
68,000 70,000 354 776 1,151 1,378 1,590
70,000 72,000 367 804 1,194 1,429 1,649
72,000 74,000 380 833 1,236 1,481 1,707
74,000 76,000 393 862 1,278 1,532 1,767
76,000 78,000 407 890 1,321 1,583 1,825
78,000 80,000 420 919 1,363 1,634 1,884
80,000 85,000 443 969 1,438 1,723 1,987
85,000 90,000 475 1,041 1,544 1,851 2,135
90,000 95,000 508 1,112 1,651 1,978 2,282
95,000 100,000 541 1,184 1,757 2,106 2,429
100,000 110,000 590 1,291 1,917 2,297 2,650
110,000 120,000 655 1,435 2,130 2,552 2,944
Example--On January 1, 2006 your business enters into a lease for an auto with a fair market value of $50,500. Your annual payments are $7,188. For 2006 the business can only deduct $6,955 ($7,188 less $233). (For 2007, you can only deduct $6,678, $7,188 less $510.) 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 2006, you could only deduct $4,869 ($5,032 less $163; both amounts are multiplied by 0.7). Prorate amounts for vehicles first leased after January 1 of the year.
Inclusion Amounts for Trucks and Vans First Leased in 2006
Notes--
Fair Market Value Tax Year of Lease Over Not Over 1st 2nd 3rd 4th 5th $16,700 $17,000 4 8 12 14 16 17,000 17,500 6 14 20 24 29 17,500 18,000 9 21 31 37 43 18,000 18,500 13 28 42 49 58 18,500 19,000 16 36 52 62 72 19,000 19,500 19 43 63 75 87 19,500 20,000 23 50 73 88 102 20,000 20,500 26 57 84 101 116 20,500 21,000 29 64 95 113 131 21,000 21,500 32 72 105 126 146 21,500 22,000 36 78 116 139 161 22,000 23,000 41 89 132 158 183 23,000 24,000 47 104 153 183 213 24,000 25,000 54 118 174 209 242 25,000 26,000 60 132 196 235 271 26,000 27,000 67 146 217 261 300 27,000 28,000 73 161 238 286 330 28,000 29,000 80 175 260 311 359 29,000 30,000 86 190 281 336 389 30,000 31,000 93 204 302 362 418 31,000 32,000 99 219 323 388 447 32,000 33,000 106 233 344 413 478 33,000 34,000 112 247 366 439 506 34,000 35,000 119 261 387 465 536 35,000 36,000 125 276 408 490 566 36,000 37,000 132 290 430 515 595 37,000 38,000 139 304 451 541 624 38,000 39,000 145 319 472 566 654 39,000 40,000 152 333 493 592 684 40,000 41,000 158 347 515 618 712 41,000 42,000 165 362 536 642 743 42,000 43,000 171 376 557 669 772 43,000 44,000 178 390 579 694 801 44,000 45,000 184 405 600 719 831 45,000 46,000 191 419 621 745 860 46,000 47,000 197 434 642 770 890 47,000 48,000 204 448 663 796 919 48,000 49,000 210 462 685 822 948 49,000 50,000 217 476 707 847 977 50,000 51,000 224 490 728 872 1,008 51,000 52,000 230 505 749 898 1,037 52,000 53,000 237 519 770 924 1,066 53,000 54,000 243 534 791 949 1,096 54,000 55,000 250 548 813 974 1,125 55,000 56,000 256 563 833 1,000 1,155 56,000 57,000 263 577 855 1,025 1,184 57,000 58,000 269 591 877 1,051 1,213 58,000 59,000 276 605 898 1,077 1,243 59,000 60,000 282 620 919 1,102 1,272 60,000 62,000 292 641 951 1,141 1,316 62,000 64,000 305 670 994 1,191 1,375 64,000 66,000 318 699 1,036 1,242 1,435 66,000 68,000 331 728 1,078 1,293 1,494 68,000 70,000 344 756 1,121 1,345 1,552 70,000 72,000 358 784 1,164 1,395 1,612 72,000 74,000 371 813 1,206 1,447 1,670 74,000 76,000 384 842 1,249 1,497 1,729 76,000 78,000 397 871 1,291 1,548 1,788 78,000 80,000 410 899 1,334 1,600 1,846Vehicles Qualifying for New Energy Tax Credit and Alternative Energy Credit
The Energy Policy Act of 2005 provides a credit for gas-hybrid cars based on their fuel efficiency and emissions. The credit applies to vehicles purchased on or after January 1, 2006 and may be as much as $3,400 for the most fuel-efficient vehicles. Taxpayers seeking the credit may want to buy early since the full credit is only available for a limited time. Taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.
In addition, certain vehicles will qualify for the alternative energy credit. These are vehicles that can only be operated on an alternative fuel such as compressed natural gas.
Notes.
Lean-Burn Technology Vehicles Qualifying for Tax Credit
Before, only hybrid vehicles, fuel cell vehicles and alternative fuel vehicles had been certified, but now certain advanced lean-burn technology vehicles, which generally run on diesel fuel have been certified. These vehicles are passenger cars or light trucks with an internal combustion engine designed to operate primarily using more air than is necessary for complete combustion of the fuel. The vehicles also must incorporate direct fuel injection technology and achieve at least 125 percent of the 2002 model year city fuel economy rating. For a taxpayer to claim the credit, the original use of the vehicle must begin with the taxpayer and the vehicle must be acquired for use or lease by the taxpayer and not for resale.
Caution. This credit is subject to a phase-out which begins when a manufacturer sells 60,000 qualified hybrid and advanced lean-burn technology vehicles.
Phase-Out of Credit for New Qualified Hybrid and Advanced Lean Burn Technology Motor Vehicles
Both the new advanced lean burn technology motor vehicle credit and the new qualified hybrid motor vehicle credit begin to phase out for a manufacturer's passenger automobiles and light trucks in the second calendar quarter after the calendar quarter in which at least 60,000 of the manufacturer's passenger automobiles and light trucks that qualify for either credit have been sold for use or lease in the United States. Taxpayers purchasing the manufacturer's vehicles during the first two calendar quarters of the phase-out period may claim only 50 percent of the otherwise allowable credit. Taxpayers purchasing the manufacturer's vehicles during the third and fourth quarters of the phase-out period may claim only 25 percent of the otherwise allowable credit. No credit is available for vehicles purchased after the last day of the fourth quarter of the phase-out period.
Vehicles Subject to Phaseout and Applicable Credit--July 1, 2010
Vehicle Credit
Jul. 1, 2010-Dec. 31, 2010 On or After Jan. 1, 2011
2009 Audi Q7 3.0L TDI $575 $0
2010 Audi Q7 3.0L TDI $575 $0
2010 Audi A3 2.0L TDI $650 $0
2010 Volkswagen Golf 2.0L TDI (auto) $850 $0
2010 Volkswagen Golf 2.0L TDI (manual) $650 $0
2009 Volkswagen Jetta 2.0L TDI Sedan $650 $0
2010 Volkswagen Jetta 2.0L TDI Sedan $650 $0
2009 Volkswagen Jetta 2.0L TDI SportWagon $650 $0
2010 Volkswagen Jetta 2.0L TDI SportWagon $650 $0
2009 Volkswagen Touareg 3.0L TDI $575 $0
2010 Volkswagen Touareg 3.0L TDI $575 $0
Vehicles Subject to Phaseout and Applicable Credit--April 1, 2009
Vehicle Credit
Apr. 1, 2009-Sept. 30, 2009 Oct. 1, 2009-Mar. 31, 2010 After Mar. 31, 2010
2005 Ford Escape 2WD $1,300 $650 $0
2005 Ford Escape 4WD $ 975 $487.50 $0
2006 Ford Escape 2WD $1,300 $650 $0
2006 Ford Escape 4WD $ 975 $487.50 $0
2006 Mercury Mariner 4WD $ 975 $487.50 $0
2007 Ford Escape 2WD $1,300 $650 $0
2007 Ford Escape 4WD $ 975 $487.50 $0
2007 Mercury Mariner 4WD $ 975 $487.50 $0
2008 Ford Escape 2WD $1,500 $750 $0
2008 Ford Escape 4WD $1,100 $550 $0
2008 Mercury Mariner 2WD $1,500 $750 $0
2008 Mercury Mariner 4WD $1,100 $550 $0
2009 Ford Escape 2WD $1,500 $750 $0
2009 Ford Escape 4WD $ 975 $487.50 $0
2009 Mercury Mariner 2WD $1,500 $750 $0
2009 Mercury Mariner 4WD $ 975 $487.50 $0
2010 Ford Fusion $1,700 $850 $0
2010 Mercury Milan $1,700 $850 $0
Vehicles Subject to Phaseout and Applicable Credit--January 1, 2008
Vehicle Credit
Jan. 1, 2008-June 30, 2008 July 1, 2008-Dec. 31, 2008 After Dec. 31, 2008
2005 Accord Hybrid AT $325 $162.50 $0
2005 Accord Hybrid Navi At $325 $162.50 $0
2005 Civic Hybrid MT $850 $425 $0
2005 Civic Hybrid CVT $850 $425 $0
2005 Insight CVT $725 $362.50 $0
2006 Accord Hybrid Navi (calibration) $650 $325 $0
2006 Accord Hybrid Navi (calibration) $650 $325 $0
2006 Accord Hybrid AT (w/o calibtn) $325 $162.50 $0
2006 Accord Hybrid Navi (w/o calibtn) $325 $162.50 $0
2006 Civic Hybrid CVT $1,050 $525 $0
2006 Insight CVT $725 $362.50 $0
2007 Accord Hybrid AT $650 $325 $0
2007 Accord Hybrid Navi AT $650 $325 $0
2007 Civic Hybrid CVT $1,050 $525 $0
2008 Civic Hybrid CVT $1,050 $525 $0
Vehicles Subject to Phaseout and Applicable Credit--October 1, 2006
Vehicle Credit
Oct. 1, 2006-March 31, 2007 April 1, 2007-Sept. 30, 2007 After Sept. 30, 2007
2007 Lexus RX 400h 2WD and 4WD $1,100 $550 $0
2007 Highlander 2WD and 4WD $1,300 $650 $0
2007 Prius $1,575 $787.50 $0
2005 Prius $1,575 $787.50 $0
2006 Prius $1,575 $787.50 $0
2006 Highlander 4WD Hybrid $1,300 $650 $0
2006 Highlander 2WD Hybrid $1,300 $650 $0
2006 Lexus RX400h 2WD $1,100 $550 $0
2006 Lexus RX400h 4WD $1,100 $550 $0
2007 Camry Hybrid $1,300 $650 $0
2007 Lexus GS 450h $775 $387.50 $0
Vehicles Qualifying for Clean Fuel Vehicle DeductionThe original purchaser of a qualifying hybrid gas-electric car may deduct $2,000 for the year the vehicle is first used, if that year is before 2006. Beginning in 2006 the deduction is replaced by a credit which varies depending on the fuel economy, weight and other factors. These vehicles qualify for the clean-fuel vehicle deduction for 2005:
Copyright 1998-2013 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 05/15/13