Instructions For Form 2106 - Employee Business Expenses

the travel is to a temporary work

If you are claiming the standard

See Pub. 463 to figure the

location in the same trade or

mileage rate for mileage driven in

inclusion amount.

business, regardless of the distance.

more than one business activity, you

Line 25. If during 2009 your

Generally, a temporary work location

must figure the deduction for each

employer provided a vehicle for your

is one where your employment is

business on a separate form or

business use and included 100% of

expected to last 1 year or less. See

schedule (for example, Form 2106 or

its annual lease value in box 1 of your

Pub. 463 for more details.

Schedule C, C-EZ, E, or F).

Form W-2, enter this amount on line

•

The travel is to a temporary work

25. If less than 100% of the annual

location outside the metropolitan area

Section C—Actual Expenses

lease value was included in box 1 of

where you live and normally work.

your Form W-2, skip line 25.

•

Line 23. Enter your total annual

Your home is your principal place

Line 28. If you completed Section D,

expenses for gasoline, oil, repairs,

of business under section

enter the amount from line 38. If you

insurance, tires, license plates, and

280A(c)(1)(A) (for purposes of

used Form 4562 to figure your

similar items. Do not include state

deducting expenses for business use

depreciation deduction, enter the total

and local personal property taxes or

of your home) and the travel is to

of the following amounts.

interest expense you paid. Deduct

another work location in the same

•

Depreciation allocable to your

state and local personal property

trade or business, regardless of

vehicle(s) (from Form 4562, line 28).

taxes on Schedule A (Form 1040),

whether that location is regular or

•

Any section 179 deduction

line 8. Employees cannot deduct car

temporary and regardless of distance.

allocable to your vehicle(s) (from

loan interest.

Form 4562, line 29).

Line 16. If you do not know the total

actual miles you used your vehicle for

Line 24a. If during 2009 you rented

Section D—Depreciation of

commuting during the year, figure the

or leased instead of using your own

Vehicles

amount to enter on line 16 by

vehicle, enter the cost of renting.

multiplying the number of days during

Also, include on this line any

Depreciation is an amount you can

the year that you used each vehicle

temporary rentals, such as when your

deduct to recover the cost or other

for commuting by the average daily

car was being repaired, except for

basis of your vehicle over a certain

round trip commuting distance in

amounts included on line 3.

number of years. In some cases, you

miles. However, if you converted your

can elect to claim a special

Line 24b. If you leased a vehicle for

vehicle during the year from personal

depreciation allowance or to expense,

a term of 30 days or more, you may

to business use (or vice versa), enter

under section 179, part of the cost of

have to reduce your deduction for

your commuting miles only for the

your vehicle in the year of purchase.

vehicle lease payments by an amount

period you drove your vehicle for

For details, see Pub. 463.

called the inclusion amount. You may

business.

Vehicle trade-in. If you traded

have an inclusion amount for a

one vehicle (the “old vehicle”) in on

Section B—Standard

passenger automobile if:

another vehicle (the “new vehicle”) in

Mileage Rate

Passenger Automobiles

2009, there are two ways you can

treat the transaction.

(Except Trucks and Vans)

You may be able to use the standard

mileage rate instead of actual

1. You can elect to treat the

And the vehicle’s fair

expenses to figure the deductible

transaction as a tax-free disposition

market value on the

costs of operating a passenger

of the old vehicle and the purchase of

The lease term

first day of the lease

vehicle, including a van, sport utility

the new vehicle. If you make this

began in:

exceeded:

vehicle (SUV), pickup, or panel truck.

election, you treat the old vehicle as

2008 or 2009 . . . . . . . . . . . . . . . . $ 18,500

disposed of at the time of the trade-in.

If you want to use the standard

The depreciable basis of the new

2007 . . . . . . . . . . . . . . . . . . . . . .

15,500

mileage rate for a vehicle you own,

vehicle is the adjusted basis of the

you must do so in the first year you

2005 or 2006 . . . . . . . . . . . . . . . .

15,200

old vehicle (figured as if 100% of the

place your vehicle in service. In later

2004 . . . . . . . . . . . . . . . . . . . . . .

17,500

vehicle’s use had been for business

years, you can deduct actual

2003 . . . . . . . . . . . . . . . . . . . . . .

18,000

purposes) plus any additional amount

expenses instead, but you must use

you paid for the new vehicle. You

1999 through 2002 . . . . . . . . . . . . .

15,500

straight line depreciation.

then figure your depreciation

1997 or 1998 . . . . . . . . . . . . . . . .

15,800

If you lease your vehicle, you can

deduction for the new vehicle

If the lease term began before 1997, see Pub. 463 to

use the standard mileage rate, but

beginning with the date you placed it

find out if you have an inclusion amount.

only if you use the rate for the entire

in service. You make this election by

You may have an inclusion amount

lease period (except for the period, if

completing Form 2106, Part II,

for a truck or van if:

any, before January 1, 1998).

Section D.

2. If you do not make the election

Trucks and Vans

If you use more than two vehicles,

described in (1), you must figure

complete and attach a second Form

depreciation separately for the

And the vehicle’s fair

2106, page 2, providing the

market value on the

remaining basis of the old vehicle and

information requested in lines 11

The lease term

first day of the lease

for any additional amount you paid for

through 22. Be sure to include the

began in:

exceeded:

the new vehicle. You must apply two

amount from line 22 of both pages in

depreciation limits. The limit that

the total on Form 2106, line 1.

2009 . . . . . . . . . . . . . . . . . . . . . . $ 18,500

applies to the remaining basis of the

2008 . . . . . . . . . . . . . . . . . . . . . .

19,000

You can also deduct state and

old vehicle generally is the amount

2007 . . . . . . . . . . . . . . . . . . . . . .

16,400

local personal property taxes. Enter

that would have been allowed had

these taxes on Schedule A (Form

you not traded in the old vehicle. The

2005 or 2006 . . . . . . . . . . . . . . . .

16,700

1040), line 8. (Personal property

limit that applies to the additional

2004 . . . . . . . . . . . . . . . . . . . . . .

18,000

taxes are not deductible on Form

amount you paid for the new vehicle

2003 . . . . . . . . . . . . . . . . . . . . . .

18,500

1040NR.)

generally is the limit that applies for

-5-

Instructions For Form 2106 - Employee Business Expenses - 2009 Page 5

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