On March 1, 2014, Sarah entered into a three year lease of an automobile used exclusively in

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On March 1, 2014, Sarah entered into a three year lease of an automobile used exclusively in her business. The automobile's FMV was $58,500 at the inception of the lease. Sarah made ten monthly lease payments of $600 each during 2014. Is Sarah able to avoid the luxury automobile restrictions on depreciation by leasing instead of purchasing the automobile? Explain. (The 2014 inclusion amount for Sarah's automobile is found in Table 13 of Appendix C.)
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Federal Taxation 2015 Comprehensive

ISBN: 9780133807783

28th Edition

Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson

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