My leased car inclusion amount was incorrectly derived

[JL001]

I have a leased car starting 2024, the FMV was $57690, the lease cost for 2024 was $17852 and insurance for $1000. I used the car 66.7% for business. Based on IRS publication 463, my inclusion amount should be 0 as the MKV was below $60000.

When I looked at the worksheet in TurboTax, line 4 in actual expenses does say 0 for the inclusion amount.

However, in part V, line 30 had an inclusion amount of $11902. 

I should be able to take deduction of $12569 but now it was reduced to $667. And I can not edit the worksheet to change the inclusion amount.

Why is TurboTax using the wrong inclusion amount?

Thanks.

[LindaS5247]

Income inclusion amounts do vary depending on the lease amount and the number of tax years during which the leased vehicle was in use for business. The income inclusion amount increases each tax year for five years. The IRS releases income inclusion amounts each year for vehicles leased and put into use in that year.

When the value of the leased vehicle is above a certain amount, you have to subtract an "income inclusion" amount from the deductible amount of your lease. This income inclusion rule is an attempt to equalize the tax benefits from leasing and owning business vehicles.

For vehicles first leased in 2024, the threshold is $62,000. Income inclusion amounts vary depending on the lease amount and the number of tax years during which the leased vehicle was in use for business.

The income inclusion amount increases each tax year for five years.

The IRS releases income inclusion amounts each year for vehicles leased and put into use in that year.

IRS Revenue Procedure 2024-13 includes the 2024 table of income inclusion amounts.

There are some online Auto Lease Inclusion calculators that you can try. Just google: Auto lease inclusion calculator
 

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