Thad entered into a three-year lease of a luxury automobile on January 1, 2019, for use 60% in business and 40% for personal use. The FMV of the automobile at the inception of the lease was $69,000, and Thad made 12 monthly lease payments of $1,000 in 2019 and 2020. (Click the icon to view the Lease Inclusion Dollar Amounts for Automobiles with a Lease Beginning Calendar Year 2019.) Read the requirements. Requirement a. Before considering the effects of any lease inclusions amounts, what amount of lease payments are deductible in 2019 and 2020? Amount of deductible Year lease payments 2019 2020 Requirement b. What portion, if any, of the "inclusion amount" must reduce Thad's lease deduction in 2019 and 2020? (Round your answers to the nearest whole dollar.) In 2019, Thad must reduce his annual lease payment deduction by In 2020, Thad must reduce his annual lease payment deduction by Requirement c. How would your answers to Parts a and b change if the FMV of the auto was $15,700 and the monthly lease payments are $290? (Round your answers to the nearest whole dollar. Enter a "0" for any zero amounts.) Amount of deductible Year lease payments 2020 is required because the Lease Inclusion Dollar Amounts for Vehicles With a Lease Term Beginning in Calendar Year 2018 REV. PROC. 2018-** TABLE 4 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2018 Fair Market Value of Passenger Automobile Over Not Over Tax Year During Lease 2nd 3rd 1st 4th 5th and Later 1 3 5 6 4 9 16 19 7 15 27 31 21 44 12 27 48 OS a ol 56 15 33 59 68 18 39 69 $50,000 51,000 52,000 53,000 54,000 55,000 56,000 57,000 58,000 59,000 60,000 62,000 64,000 66,000 68,000 81 $51,000 52,000 53,000 54,000 55,000 56,000 57,000 58,000 59,000 60,000 62,000 64,000 66,000 68,000 70,000 20 45 67 80 93 23 51 91 105 26 57 85 101 117 30 66 98 118 135 36 78 116 139 160 41 90 134 160 185 46 102 152 181 210 52 114 169 203 235 57 126 187 225 259 63 138 205 246 284 68 150 223 267 309 74 164 241 288 333 79 174 259 310 357 89 195 290 347 401 102 225 335 400 463 116 225 379 454 525 130 285 423 508 586 150 330 491 581 679 178 390 579 695 802 70,000 72,000 74,000 76,000 78,000 80,000 85,000 90,000 195,000 100,000 110,000 120,000 130,000 140,000 150,000 160,000 170,000 180,000 190,000 200,000 210,000 220,000 230,000 72,000 74,000 76,000 78,000 80,000 85,000 90,000 95,000 100,000 110,000 120,000 130,000 140,000 150,000 160,000 170,000 180,000 190,000 200,000 210,000 220,000 230,000 240,000 205 450 669 801 923 232 510 758 260 570 847 287 630 936 314 691 342 750 369 8810 908 1,015 1,122 1,230 1,336 1,442 1,550 1,656 1,764 1,871 1,977 1,049 1,172 1,296 1,419 1,543 1,666 1,789 1,913 2,036 2,159 2,283 1,024 1,114 1,204 1,292 1,382 1,470 1,559 1,649 396 8871 424 930 451 991 478 1,051 1,111 505 Thad entered into a three-year lease of a luxury automobile on January 1, 2019, for use 60% in business and 40% for personal use. The FMV of the automobile at the inception of the lease was $69,000, and Thad made 12 monthly lease payments of $1,000 in 2019 and 2020. (Click the icon to view the Lease Inclusion Dollar Amounts for Automobiles with a Lease Beginning Calendar Year 2019.) Read the requirements. Requirement a. Before considering the effects of any lease inclusions amounts, what amount of lease payments are deductible in 2019 and 2020? Amount of deductible Year lease payments 2019 2020 Requirement b. What portion, if any, of the "inclusion amount" must reduce Thad's lease deduction in 2019 and 2020? (Round your answers to the nearest whole dollar.) In 2019, Thad must reduce his annual lease payment deduction by In 2020, Thad must reduce his annual lease payment deduction by Requirement c. How would your answers to Parts a and b change if the FMV of the auto was $15,700 and the monthly lease payments are $290? (Round your answers to the nearest whole dollar. Enter a "0" for any zero amounts.) Amount of deductible Year lease payments 2020 is required because the Lease Inclusion Dollar Amounts for Vehicles With a Lease Term Beginning in Calendar Year 2018 REV. PROC. 2018-** TABLE 4 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2018 Fair Market Value of Passenger Automobile Over Not Over Tax Year During Lease 2nd 3rd 1st 4th 5th and Later 1 3 5 6 4 9 16 19 7 15 27 31 21 44 12 27 48 OS a ol 56 15 33 59 68 18 39 69 $50,000 51,000 52,000 53,000 54,000 55,000 56,000 57,000 58,000 59,000 60,000 62,000 64,000 66,000 68,000 81 $51,000 52,000 53,000 54,000 55,000 56,000 57,000 58,000 59,000 60,000 62,000 64,000 66,000 68,000 70,000 20 45 67 80 93 23 51 91 105 26 57 85 101 117 30 66 98 118 135 36 78 116 139 160 41 90 134 160 185 46 102 152 181 210 52 114 169 203 235 57 126 187 225 259 63 138 205 246 284 68 150 223 267 309 74 164 241 288 333 79 174 259 310 357 89 195 290 347 401 102 225 335 400 463 116 225 379 454 525 130 285 423 508 586 150 330 491 581 679 178 390 579 695 802 70,000 72,000 74,000 76,000 78,000 80,000 85,000 90,000 195,000 100,000 110,000 120,000 130,000 140,000 150,000 160,000 170,000 180,000 190,000 200,000 210,000 220,000 230,000 72,000 74,000 76,000 78,000 80,000 85,000 90,000 95,000 100,000 110,000 120,000 130,000 140,000 150,000 160,000 170,000 180,000 190,000 200,000 210,000 220,000 230,000 240,000 205 450 669 801 923 232 510 758 260 570 847 287 630 936 314 691 342 750 369 8810 908 1,015 1,122 1,230 1,336 1,442 1,550 1,656 1,764 1,871 1,977 1,049 1,172 1,296 1,419 1,543 1,666 1,789 1,913 2,036 2,159 2,283 1,024 1,114 1,204 1,292 1,382 1,470 1,559 1,649 396 8871 424 930 451 991 478 1,051 1,111 505