Trish entered into a 36-month lease of an automobile on January 1. She uses it 90 percent
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Trish entered into a 36-month lease of an automobile on January 1. She uses it 90 percent for business use and 10 percent for personal use.The fair market value of the automobile at the inception of the lease is $50,000. She made 12 monthly lease payments of $650 during the year.
a. What amount of the lease payments is deductible for the year?
b. What is the lease inclusion amount that Trish must include in her gross income this year?
c. How would your answer to
(b) change if the fair market value of the automobile was only $15,000?
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Related Book For
Taxation For Decision Makers 2008
ISBN: 9780324654110
2nd Edition
Authors: Shirley Dennis-Escoffier, Karen A. Fortin
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