Instructions For Form 2106 (2015) Page 6
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9Trucks and Vans
figure your depreciation deduction for
applicable, any special depreciation
the new vehicle beginning with the
allowance claimed for this year.
And the vehicle's
date you placed it in service. You
Section 179 deduction. If 2015 is
fair market value on
make this election by completing
the first year your vehicle was placed
The lease term
the first day of the
Form 2106, Part II, Section D.
in service and the percentage on
began in:
lease exceeded:
2. If you do not make the election
line 14 is more than 50%, you can
2015
$ 19,500
. . . . . . . . . . . . . . . . . .
described in (1), you must figure
elect to deduct as an expense a
2014
19,500
depreciation separately for the
. . . . . . . . . . . . . . . . . .
portion of the cost (subject to a yearly
remaining basis of the old vehicle and
2013
19,000
limit). To calculate this section 179
. . . . . . . . . . . . . . . . . .
for any additional amount you paid for
deduction, multiply the part of the cost
2012
19,000
. . . . . . . . . . . . . . . . . .
the new vehicle. You must apply two
of the vehicle that you choose to
2011
19,000
. . . . . . . . . . . . . . . . . .
depreciation limits. The limit that
expense by the percentage on line 14.
applies to the remaining basis of the
See Pub. 463 to figure the inclusion
The total of your depreciation and
old vehicle generally is the amount
amount.
section 179 deduction generally
that would have been allowed had you
cannot be more than the percentage
Line 25. If during 2015 your employer
not traded the old vehicle. The limit
on line 14 multiplied by the applicable
provided a vehicle for your business
that applies to the additional amount
limit explained in the
line 36
use and included 100% of its annual
you paid for the new vehicle generally
instructions. Your section 179
lease value in box 1 of your Form
is the limit that applies for the tax year
deduction for the year cannot be more
W-2, enter this amount on line 25. If
it was placed in service, reduced by
than the income from your job and any
less than 100% of the annual lease
the depreciation allowance for the
other active trade or business on your
value was included in box 1 of your
remaining basis of the old vehicle.
Form 1040.
Form W-2, skip line 25.
You must use Form 4562 to compute
If you are claiming a section
Line 28. If you completed Section D,
your depreciation deduction. You
179 deduction on other
enter the amount from line 38. If you
!
cannot use Form 2106, Part II,
property, or you placed more
used Form 4562 to figure your
Section D.
CAUTION
than $2,000,000 of section 179
depreciation deduction, enter the total
If you elect to use the method
property in service during the year,
of the following amounts.
described in (1), you must do so on a
use Form 4562 to figure your section
Depreciation allocable to your
timely filed tax return (including
179 deduction. Enter the amount of
vehicle(s) (from Form 4562, line 28).
extensions). Otherwise, you must use
the section 179 deduction allocable to
Any section 179 deduction
the method described in (2).
your vehicle from Form 4562, line 12,
allocable to your vehicle(s) (from
on Form 2106, line 31.
Line 30. Enter the vehicle's actual
Form 4562, line 29).
cost or other basis. Do not reduce
Section D—Depreciation of
Note. For section 179 purposes,
your basis by any prior year's
Vehicles
the cost of the new vehicle does not
depreciation. However, you must
include the adjusted basis of the
reduce your basis by any deductible
Depreciation is an amount you can
vehicle you traded in.
casualty loss, deduction for clean-fuel
deduct to recover the cost or other
vehicle, gas guzzler tax, alternative
basis of your vehicle over a certain
Example.
number of years. In some cases, you
motor vehicle credit, or qualified
can elect to claim a special
plug-in electric vehicle credit you
Cost including taxes
$25,000
. . . .
depreciation allowance or to expense,
claimed. Increase your basis by any
Adjusted basis of
under section 179, part of the cost of
sales tax paid (unless you deducted
− 3,000
trade-in
. . . . . . . . . . . . .
your vehicle in the year of purchase.
sales taxes in the year you purchased
Section 179 basis
$22,000
your vehicle) and any substantial
For details, see Pub. 463.
. . . . . .
improvements to your vehicle.
Limit on depreciation and
Vehicle trade-in. If you traded in
If you traded in your vehicle, your
section 179 deduction
$11,160*
. . .
one vehicle (the “old vehicle”) for
basis is the adjusted basis of the old
another vehicle (the “new vehicle”) in
Smaller of:
vehicle (reduced by depreciation
2015, there are two ways you can
figured as if 100% of the vehicle's use
Section 179 basis, or limit on
treat the transaction.
had been for business purposes) plus
depreciation
$11,160
. . . . . . . . .
1. You can elect to treat the
any additional amount you pay for the
transaction as a tax-free disposition of
Percentage on line 14
× .75
. . .
new vehicle. See Pub. 463 for more
the old vehicle and the purchase of
information.
Section 179 deduction
$8,370
. . .
the new vehicle. If you make this
If you converted the vehicle from
election, you treat the old vehicle as
*$3,160 if electing out of special
personal use to business use, your
depreciation allowance or not qualified
disposed of at the time of the trade-in.
basis for depreciation is the smaller of
property.
The depreciable basis of the new
the vehicle's adjusted basis or its fair
vehicle is the adjusted basis of the old
market value on the date of
vehicle (figured as if 100% of the
conversion.
vehicle's use had been for business
Limit for sport utility and certain
purposes) plus any additional amount
other vehicles. For sport utility and
Line 31. Enter the amount of any
you paid for the new vehicle. You then
certain other vehicles placed in
section 179 deduction and, if
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Instructions for Form 2106 (2015)
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