For the seventh and subsequent taxable years during which a passenger automobile is leased, the inclusion amount is 6 percent of the excess (if any) of the automobile's fair market value over the sum of (A) $16,500 and (B) $6,000 multiplied by the number of such taxable years in excess of three years. See paragraph (g)(2) of this section for the definition of fair market value.
If a passenger automobile is not predominantly used in a qualified business use during- | The dollar amount: | |||
Lease term (years) | ||||
1 | 2 | 3 | 4 or more | |
The first taxable year of the lease term | $350 | $700 | $1,350 | $1,850 |
The second taxable year of the lease term | 650 | 1,250 | ||
The third taxable year of the lease term | 650 |
If a passenger automobile is not predominantly used in a qualified business use during- | The applicable percentage: | |||
Lease term (years) | ||||
1 | 2 | 3 | 4 or more | |
The first taxable year of the lease term | 3.0 | 6.0 | 10.2 | 13.2 |
The second taxable year of the lease term | 1.25 | 6.2 | 10.4 | |
The third taxable year of the lease term | 2.25 | 6.5 | ||
The fourth taxable year of the lease term | 1.7 | |||
The fifth taxable year of the lease term | 0.5 |
Dollar Amounts: Years 1-3
Fair market value | Taxable year quarter | ||||
Greater than- | But not greater than- | 4th | 3d | 2d | 1st |
$11,250 | $11,500 | $8 | $7 | $6 | $6 |
11,500 | 11,750 | 24 | 21 | 19 | 17 |
11,750 | 12,000 | 40 | 35 | 32 | 29 |
12,000 | 12,250 | 56 | 49 | 44 | 40 |
12,250 | 12,500 | 72 | 64 | 57 | 52 |
12,500 | 12,750 | 88 | 78 | 70 | 63 |
12,750 | 13,000 | 104 | 92 | 83 | 75 |
13,000 | 13,250 | 120 | 106 | 95 | 86 |
13,250 | 13,500 | 144 | 128 | 115 | 104 |
13,500 | 13,750 | 172 | 153 | 137 | 124 |
13,750 | 14,000 | 200 | 177 | 159 | 145 |
14,000 | 14,250 | 228 | 202 | 182 | 165 |
14,250 | 14,500 | 256 | 227 | 204 | 185 |
14,500 | 14,750 | 284 | 252 | 226 | 206 |
14,750 | 15,000 | 312 | 277 | 249 | 226 |
15,000 | 15,250 | 340 | 302 | 271 | 246 |
15,250 | 15,500 | 369 | 327 | 293 | 266 |
15,500 | 15,750 | 397 | 352 | 316 | 287 |
15,750 | 16,000 | 425 | 377 | 338 | 307 |
16,000 | 16,250 | 453 | 402 | 360 | 327 |
16,250 | 16,500 | 481 | 426 | 383 | 348 |
16,500 | 16,750 | 509 | 451 | 405 | 368 |
16,750 | 17,000 | 537 | 476 | 428 | 388 |
17,000 | 17,500 | 579 | 514 | 461 | 419 |
17,500 | 18,000 | 635 | 563 | 506 | 459 |
18,000 | 18,500 | 691 | 613 | 550 | 500 |
18,500 | 19,000 | 748 | 663 | 595 | 541 |
19,000 | 19,500 | 804 | 713 | 640 | 581 |
19,500 | 20,000 | 860 | 763 | 685 | 622 |
20,000 | 20,500 | 916 | 812 | 729 | 662 |
20,500 | 21,000 | 972 | 862 | 774 | 703 |
21,000 | 21,500 | 1,028 | 912 | 819 | 744 |
21,500 | 22,000 | 1,084 | 962 | 863 | 784 |
22,000 | 23,000 | 1,169 | 1,036 | 930 | 845 |
23,000 | 24,000 | 1,281 | 1,136 | 1,020 | 926 |
24,000 | 25,000 | 1,393 | 1,236 | 1,109 | 1,007 |
25,000 | 26,000 | 1,506 | 1,335 | 1,199 | 1,089 |
26,000 | 27,000 | 1,618 | 1,435 | 1,288 | 1,170 |
27,000 | 28,000 | 1,730 | 1,534 | 1,377 | 1,251 |
28,000 | 29,000 | 1,842 | 1,634 | 1,467 | 1,332 |
29,000 | 30,000 | 1,955 | 1,734 | 1,556 | 1,413 |
30,000 | 31,000 | 2,067 | 1,833 | 1,646 | 1,495 |
31,000 | 32,000 | 2,179 | 1,933 | 1,735 | 1,576 |
32,000 | 33,000 | 2,292 | 2,032 | 1,824 | 1,657 |
33,000 | 34,000 | 2,404 | 2,132 | 1,914 | 1,738 |
34,000 | 35,000 | 2,516 | 2,232 | 2,003 | 1,819 |
35,000 | 36,000 | 2,629 | 2,331 | 2,093 | 1,901 |
36,000 | 37,000 | 2,741 | 2,431 | 2,182 | 1,982 |
37,000 | 38,000 | 2,853 | 2,530 | 2,271 | 2,063 |
38,000 | 39,000 | 2,965 | 2,630 | 2,361 | 2,144 |
39,000 | 40,000 | 3,078 | 2,730 | 2,450 | 2,225 |
40,000 | 41,000 | 3,190 | 2,829 | 2,540 | 2,307 |
41,000 | 42,000 | 3,302 | 2,929 | 2,629 | 2,388 |
42,000 | 43,000 | 3,415 | 3,028 | 2,718 | 2,469 |
43,000 | 44,000 | 3,527 | 3,128 | 2,808 | 2,550 |
44,000 | 45,000 | 3,639 | 3,228 | 2,897 | 2,631 |
45,000 | 46,000 | 3,752 | 3,327 | 2,987 | 2,713 |
46,000 | 47,000 | 3,864 | 3,427 | 3,076 | 2,794 |
47,000 | 48,000 | 3,976 | 3,526 | 3,165 | 2,875 |
48,000 | 49,000 | 4,088 | 3,626 | 3,255 | 2,956 |
49,000 | 50,000 | 4,201 | 3,726 | 3,344 | 3,037 |
Dollar Amounts: Years 4-6
Fair market value | Year | |||
Greater than- | But not greater than- | 4 | 5 | 6 |
$18,000 | $18,500 | $15 | ||
18,500 | 19,000 | 45 | ||
19,000 | 19,500 | 75 | ||
19,500 | 20,000 | 105 | ||
20,000 | 20,500 | 135 | ||
20,500 | 21,000 | 165 | ||
21,000 | 21,500 | 195 | ||
21,500 | 22,000 | 225 | ||
22,000 | 23,000 | 270 | ||
23,000 | 24,000 | 330 | $42 | |
24,000 | 25,000 | 390 | 102 | |
25,000 | 26,000 | 450 | 162 | |
26,000 | 27,000 | 510 | 222 | |
27,000 | 28,000 | 570 | 282 | |
28,000 | 29,000 | 630 | 342 | $54 |
29,000 | 30,000 | 690 | 402 | 114 |
30,000 | 31,000 | 750 | 462 | 174 |
31,000 | 32,000 | 810 | 522 | 234 |
32,000 | 33,000 | 870 | 582 | 294 |
33,000 | 34,000 | 930 | 642 | 354 |
34,000 | 35,000 | 990 | 702 | 414 |
35,000 | 36,000 | 1,050 | 762 | 474 |
36,000 | 37,000 | 1,110 | 822 | 534 |
37,000 | 38,000 | 1,170 | 882 | 594 |
38,000 | 39,000 | 1,230 | 942 | 654 |
39,000 | 40,000 | 1,290 | 1,002 | 714 |
40,000 | 41,000 | 1,350 | 1,062 | 774 |
41,000 | 42,000 | 1,410 | 1,122 | 834 |
42,000 | 43,000 | 1,470 | 1,182 | 894 |
43,000 | 44,000 | 1,530 | 1,242 | 954 |
44,000 | 45,000 | 1,590 | 1,302 | 1,014 |
45,000 | 46,000 | 1,650 | 1,362 | 1,074 |
46,000 | 47,000 | 1,710 | 1,422 | 1,134 |
47,000 | 48,000 | 1,770 | 1,482 | 1,194 |
48,000 | 49,000 | 1,830 | 1,542 | 1,254 |
49,000 | 50,000 | 11,890 | 1,602 | 1,314 |
If a passenger automobile is not predominantly used in a qualified business use during- | The dollar amount is: | |||
Lease term (years)- | ||||
1 | 2 | 3 | 4 or more | |
The first taxable year of the lease term | $350 | $700 | $1,150 | $1,500 |
The second taxable year of the lease term | 150 | 700 | 1,200 | |
The third taxable year of the lease term | 250 | 750 |
If a passenger automobile is not predominantly used in a qualified business use during- | The applicable percentage: | |||
Lease term (years)- | ||||
1 | 2 | 3 | 4 or more | |
The first taxable year of the lease term | 3.0 | 6.0 | 10.2 | 13.2 |
The second taxable year of the lease term | 1.25 | 6.2 | 10.4 | |
The third taxable year of the lease term | 2.25 | 6.5 | ||
The fourth taxable year of the lease term | 1.7 | |||
The fifth taxable year of the lease term | 0.5 |
Taxable year during lease term | For the first taxable year in which the business use percentage is 50 percent or less, the applicable percentage for such taxable year is- | |||||
1 | 2 | 3 | 4 | 5 | 6 and later | |
For a lease term of: | ||||||
1 year | 3.0 | |||||
2 years | 6.0 | 1.25 | ||||
3 years | 10.2 | 6.2 | 2.25 | |||
4 or more years | 13.2 | 10.4 | 6.5 | 1.7 | 0.5 | 0 |
Taxable year during lease term | For the first taxable year in which the business use percentage is 50 percent or less, the applicable percentage for such taxable year is- | |||||||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
For a lease term of: | ||||||||||||
1 year | 2.7 | |||||||||||
2 years | 5.3 | 1.2 | ||||||||||
3 years | 9.9 | 6.1 | 1.6 | |||||||||
4 years | 14.4 | 11.1 | 7.3 | 2.3 | ||||||||
5 years | 18.4 | 15.7 | 12.4 | 8.2 | 3.0 | |||||||
6 or more years | 21.8 | 19.6 | 16.7 | 13.5 | 9.6 | 5.25 | 4.4 | 3.6 | 2.8 | 1.8 | 1.0 | 0 |
Taxable year during lease term | For the first taxable year in which the business use percentage is 50 pct or less, the applicable percentage for such taxable year is- | ||||||||||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | |
For a lease term of: | |||||||||||||||
1 year | 2.5 | ||||||||||||||
2 years | 5.1 | .6 | |||||||||||||
3 years | 9.8 | 5.6 | 1.0 | ||||||||||||
4 years | 14.0 | 10.3 | 6.2 | 1.4 | |||||||||||
5 years | 17.9 | 14.5 | 10.9 | 6.7 | 1.8 | ||||||||||
6 years | 21.3 | 18.3 | 15.1 | 11.4 | 7.1 | 2.1 | |||||||||
7 years | 21.9 | 19.0 | 15.9 | 12.4 | 8.4 | 3.9 | 2.4 | ||||||||
8 years | 22.4 | 19.6 | 16.7 | 13.4 | 9.7 | 5.5 | 4.5 | 2.7 | |||||||
9 years | 22.9 | 20.2 | 17.4 | 14.3 | 10.9 | 7.0 | 6.4 | 5.1 | 3.0 | ||||||
10 years | 23.5 | 20.9 | 18.2 | 15.2 | 11.9 | 8.3 | 8.1 | 7.2 | 5.7 | 3.3 | |||||
11 years | 23.9 | 21.4 | 18.8 | 16.0 | 12.8 | 9.3 | 9.4 | 8.9 | 7.7 | 5.9 | 3.1 | ||||
12 years | 24.3 | 21.9 | 19.3 | 16.5 | 13.4 | 10.1 | 10.3 | 10.0 | 9.3 | 7.8 | 5.5 | 2.9 | |||
13 years | 24.7 | 22.2 | 19.7 | 16.9 | 14.0 | 10.7 | 11.1 | 11.0 | 10.4 | 9.2 | 7.4 | 5.2 | 2.7 | ||
14 years | 25.0 | 22.5 | 20.1 | 17.3 | 14.4 | 11.1 | 11.6 | 11.7 | 11.3 | 10.3 | 8.8 | 6.9 | 4.8 | 2.5 | |
15 or more years | 25.3 | 22.8 | 20.3 | 17.5 | 14.7 | 11.5 | 12.0 | 12.2 | 11.9 | 11.1 | 9.8 | 8.2 | 6.5 | 4.5 | 2.3 |
Taxable year | Dollar amount | Proration | Business use (percent) | Inclusion |
1985 | $3,327 | 170/365 | 100 | $1,550 |
1986 | 3,327 | 365/365 | 100 | 3,327 |
1987 | 3,327 | 365/365 | 100 | 3,327 |
1988 | 1,650 | 366/366 | 100 | 1,650 |
1989 | 1,362 | 365/365 | 100 | 1,362 |
Taxable year | Dollar amount | Proration | Business use (percent) | Inclusion |
1985 | $3,327 | 170/365 | 100 | $1,550 |
1986 | 3,327 | 365/365 | 100 | 3,327 |
1987 | 3,327 | 365/365 | 45 | 1,497 |
750 | 81.67 | 612 | ||
1988 | 1,650 | 366/366 | 45 | 743 |
1989 | 1,362 | 365/365 | 45 | 613 |
26 C.F.R. §1.280F-5T
98 Stat. 494, 26 U.S.C. 280F ; 68A Stat. 917, 26 U.S.C. 7805