How To Calculate Inclusion Amounts on Vehicle Leases

If you lease a car that you use in your business for a lease term of 30 days or more, you may have to include an inclusion amount in your income for each tax year you lease the car. To do this, you do not add an amount to income. Instead, you reduce your deduction for your lease payment. (This reduction has an effect similar to the limit on the depreciation deduction you would have on the car if you owned it.)

The inclusion amount is a percentage of part of the fair market value of the leased car multiplied by the percentage of business and investment use of the car for the tax year. It is prorated for the number of days of the lease term in the tax year.

The inclusion amount applies to each tax year that you lease the car if the fair market value (defined next) of the car when the lease began was more than the amounts shown in the following table.

	Year Lease Began	Fair Market Value*
	1999	$ 15,500
	1997-1998	15,800
	1995-1996	15,500
	1994	14,600
	1993	14,300
	1992	13,700
	1991	13,400
	1987-1990	12,800
*These amounts are higher for electric cars. Click "Next" below for more information on this topic. The Vehicle Mileage & Maintenance Record Book is designed for busy professionals like you who are tired of cheap tax information recording tools that fall apart and don't provide adequate room on forms for writing. Order one of our auto mileage logs today and start making this essential task simple and quick. Each book comes with a MONEY BACK GUARANTEE!  Click here to order by using our online shopping cart, downloadable order form, or through Amazon.com.   << Start < Prev 1 2 3 Next > End >>