|
[QUOTE=tony20009;13549314]
For example, if the OP leases a $40K 3er for 3/4ths of a year and the "inclusion number" is 25 for year one of the lease, the amount of the deduction for the leased car's costs must be reduced by (25(.75 x 365) = 6844, with $6844 being the "inclusion amount."
I'm running scenarios for my business I thik lease vs buy. I've been looking at inclusion amount in your above example you say $6844. I'm not getting that but more like $150 total on m550 first year. It very confusing. I saw this posted by accounts t> Example: John begins a lease on a Buick Regal during 2015. John uses the vehicle 100% for business. His lease payment is $300 per month and the capitalized cost in the lease agreement is $30,000. John’s lease expense for 2012 is $3,300. The lease inclusion amount for 2015 based on a $30,000 fair market vehicle is $9. Therefore, John lease expense for 2015 is $3,291 ($3,300 lease payment less $9 lease inclusion amount).
Example 2: Same as above, except that John uses the vehicle 80% for business. John’s lease expense is now $2,640 ($3,300 lease payment times 80% business use). His lease inclusion amount is $7.20 ($9 times 80% business use). His lease expense for 2015 is therefore $2,632.80.
As you can see, the lease inclusion amount isn’t too big of a deal. But it’s still something that has to be tracked.
|