Small Business Taxes & Management

Auto and Vehicle Tables

 

Small Business Taxes & ManagementTM--Copyright 2014, 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.

                                      2014    2013    2012    2011    2010    2009    2008     
Business mileage (cents per mile)      56     56.5    55.5     51#     50      55     50.5*                  
Charitable mileage                     14      14      14      14      14      14      14             
Medical mileage                       23.5     24      23      19#     16.5    24      19*        
Moving mileage                        23.5     24      23      19#     16.5    24      19*           
#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.

 

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

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
2007                  15,100                16,100
2006                  15,000                16,400
2005                  14,800                16,300

Where Fleet-Average Valuation Rule Used
Year             Auto Max. Value    Truck/Van Max. Value
    
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

2014                           22 cents per mile
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
1989-1991                      11
1988                           10.5


Example--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 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 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        Depreciation

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


             Depreciation Limits for Trucks and Vans

Tax Year        Depreciation

First             $3,460         
Second             5,500           
Third              3,350           
Subsequent         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 $3,160. 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). Thus, a $41,000 car would take about 19 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 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 2007

Depreciation 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 2006

Depreciation 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 1995-2005

The 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

 

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 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
 
Inclusion 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  1,018

Example--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    648
 
Inclusion 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  2,238

Example--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  1,411
 
Inclusion 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  1,936
 
 


Copyright 1998-2014 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 03/21/14

Return to Home Page