Instructions For Form 2106 - Employee Business Expenses - 2010 Page 5
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8See the line 15 instructions below for
If you want to use the standard
Passenger Automobiles
the definition of commuting.
mileage rate for a vehicle you own,
(Except Trucks and Vans)
you must do so in the first year you
Line 14. Divide line 13 by line 12 to
And the vehicle’s fair
place your vehicle in service. In later
figure your business use percentage.
market value on the
years, you can deduct actual
The lease term
first day of the lease
expenses instead, but you must use
Change from personal to
began in:
exceeded:
straight line depreciation.
business use. If you entered on line
2010 . . . . . . . . . . . . . . . . . . . . . . $ 18,500
12 the total number of miles driven
2008 or 2009 . . . . . . . . . . . . . . . .
18,500
after the change to business use,
If you lease your vehicle, you can
multiply the percentage you figured
use the standard mileage rate, but
2007 . . . . . . . . . . . . . . . . . . . . . .
15,500
by the number of months you drove
only if you use the rate for the entire
2005 or 2006 . . . . . . . . . . . . . . . .
15,200
the vehicle for business and divide
lease period (except for the period, if
2004 . . . . . . . . . . . . . . . . . . . . . .
17,500
the result by 12.
any, before January 1, 1998).
2003 . . . . . . . . . . . . . . . . . . . . . .
18,000
Line 15. Enter your average daily
2001 or 2002 . . . . . . . . . . . . . . . .
15,500
If you use more than two vehicles,
round trip commuting distance. If you
If the lease term began before 2001, see Pub. 463 to
complete and attach a second Form
went to more than one work location,
find out if you have an inclusion amount.
figure the average.
2106, page 2, providing the
You may have an inclusion amount
information requested in lines 11
Commuting. Generally,
for a truck or van if:
through 22. Be sure to include the
commuting is travel between your
Trucks and Vans
amount from line 22 of both pages in
home and a work location. However,
the total on Form 2106, line 1.
travel that meets any of the following
And the vehicle’s fair
conditions is not commuting.
market value on the
You can also deduct state and
•
The lease term
first day of the lease
You have at least one regular work
local personal property taxes. Enter
began in:
exceeded:
location away from your home and
these taxes on Schedule A (Form
the travel is to a temporary work
2010 . . . . . . . . . . . . . . . . . . . . . . $ 19,000
1040), line 8. (Personal property
location in the same trade or
2009 . . . . . . . . . . . . . . . . . . . . . .
18,500
taxes are not deductible on Form
business, regardless of the distance.
2008 . . . . . . . . . . . . . . . . . . . . . .
19,000
Generally, a temporary work location
1040NR.)
is one where your employment is
2007 . . . . . . . . . . . . . . . . . . . . . .
16,400
expected to last 1 year or less. See
If you are claiming the standard
2005 or 2006 . . . . . . . . . . . . . . . .
16,700
Pub. 463 for more details.
mileage rate for mileage driven in
2004 . . . . . . . . . . . . . . . . . . . . . .
18,000
•
The travel is to a temporary work
more than one business activity, you
2003 . . . . . . . . . . . . . . . . . . . . . .
18,500
location outside the metropolitan area
must figure the deduction for each
2001 or 2002 . . . . . . . . . . . . . . . .
15,500
where you live and normally work.
business on a separate form or
•
Your home is your principal place
schedule (for example, Form 2106 or
See Pub. 463 to figure the
of business under section
Schedule C, C-EZ, E, or F).
inclusion amount.
280A(c)(1)(A) (for purposes of
deducting expenses for business use
Line 25. If during 2010 your
Section C—Actual Expenses
of your home) and the travel is to
employer provided a vehicle for your
another work location in the same
business use and included 100% of
Line 23. Enter your total annual
trade or business, regardless of
its annual lease value in box 1 of your
expenses for gasoline, oil, repairs,
whether that location is regular or
Form W-2, enter this amount on line
insurance, tires, license plates, and
temporary and regardless of distance.
25. If less than 100% of the annual
similar items. Do not include state
lease value was included in box 1 of
Line 16. If you do not know the total
and local personal property taxes or
your Form W-2, skip line 25.
actual miles you used your vehicle for
interest expense you paid. Deduct
Line 28. If you completed Section D,
commuting during the year, figure the
state and local personal property
enter the amount from line 38. If you
amount to enter on line 16 by
taxes on Schedule A (Form 1040),
used Form 4562 to figure your
multiplying the number of days during
line 8. Employees cannot deduct car
depreciation deduction, enter the total
the year that you used each vehicle
loan interest.
of the following amounts.
for commuting by the average daily
•
Depreciation allocable to your
round trip commuting distance in
vehicle(s) (from Form 4562, line 28).
Line 24a. If during 2010 you rented
miles. However, if you converted your
•
Any section 179 deduction
or leased instead of using your own
vehicle during the year from personal
allocable to your vehicle(s) (from
vehicle, enter the cost of renting.
to business use (or vice versa), enter
Form 4562, line 29).
Also, include on this line any
your commuting miles only for the
temporary rentals, such as when your
period you drove your vehicle for
Section D—Depreciation of
business.
car was being repaired, except for
Vehicles
amounts included on line 3.
Depreciation is an amount you can
Section B—Standard
deduct to recover the cost or other
Mileage Rate
Line 24b. If you leased a vehicle for
basis of your vehicle over a certain
a term of 30 days or more, you may
You may be able to use the standard
number of years. In some cases, you
have to reduce your deduction for
mileage rate instead of actual
can elect to claim a special
vehicle lease payments by an amount
expenses to figure the deductible
depreciation allowance or to expense,
called the inclusion amount. You may
costs of operating a passenger
under section 179, part of the cost of
have an inclusion amount for a
vehicle, including a van, sport utility
your vehicle in the year of purchase.
passenger automobile if:
vehicle (SUV), pickup, or panel truck.
For details, see Pub. 463.
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