I won a 2 year car lease, value of $15K. Told I will get 1099 for the full $15K this year. If I have car for 3 months in '17, shouldn't I be taxed on 3/24th of the cost?

[Carl]

No. You received the award in 2017, so you will be taxed on it in 2017. The fact the award crosses tax years doesn't matter.

[aschumert]

Carl, but I found the following link from 3 years ago <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2865661-do-i-have-to-claim-the-entire-amount-of-a-2-year-lease-in-...>. This says differently. Also, the link info is more in line with my understanding of taxes. While I won it in 2017, I am only getting the economic benefit of a portion of it.  It is not like I won the car, I won some one paying monthly payments on my behalf.

[Carl]

How do you know they're paying monthly, and didn't pay the entire 2 years up front in one lump sum? Weather they did or not wouldn't matter anyway, because you were awarded the $15K monetary value in 2017. THey didn't award you just part of it in 2017. They awarded you *all* of it in 2017. Therefore, it's taxable in 2017.
Your link from 3 years ago is irrelevant really, as tax laws change *every* year.
Bottom line is, they awarded you the entire value of $15K in 2017, and the awarding entity has every right to deduct it from their taxes in 2017, and transfer that value to you in the same tax year via the appropriate tax reporting document so that you pay taxes on it.

[aschumert]

Carl, sorry for doubting, but want to be sure on this as it obviously has a big impact on my taxes.  Could you please reference where you getting your answer from?  Also, I understand the IRS to be cash based, not earned based.  For example, my 2017 earned bonus from my company won't be paid until 2018 when it will be in my W-2.  So I earned something, but have not received any cash, and have not received the economic benefit from, why would I pay taxes on the full amount?

[aschumert]

Carl,  looks like I was misreading the previous post/link.  I was reading that the need to fill out the Form 4598 was in reference to the prorating the gift, but it was really in reference to the wrong FMV.  The link appears to be still relevant and active law as it does mention the gift needs to be 10 years to prorate. Thanks for your assistance.