Fair market value of leased vehicle

[stmacik]

Where do I find the 'fair market value' of my vehicle on the first day of my lease? It says 'generally the amount of the lease' but I don't know what this means.  Is it the total value of the vehicle as if it were for sale?

[RichardK · Accepted solution]

Yes, the fair market value is basically the same as the sales value, and many times it will have the fair market value or sales value in the lease documents. 

[stmacik]

Thanks very much for your help! I found 2 possibilities in my lease documents. In the lease contract it says my monthly payments are determined based on the gross capitalized cost ('total agreed upon value of the vehicle' plus gap coverage plus document processing plus acquisition fee)) of $21,225. In another document it has the MSRP plus special color and mats plus delivery and handling fees for a total of $20, 950.  So there's a $275 difference between the two numbers, but it seems like either might be the fair market value? Since the question in TurboTax about the original fair market value followed a question about my total lease payments last year, I wonder if the higher number from the lease contract is the correct one since it is the one that determines my monthly payments? Thanks again!!

[RichardK]

I think you could use either. If you feel more comfortable with the higher number use that, the actual income inclusion amount difference between the two prices will be minimal.