Inclusion Amounts Worksheet for Leased Property (Other than Cars)

If, instead of purchasing it, you lease your computer system, audio/visual equipment, or other listed property, you may have to include an additional amount known as the "inclusion amount" in your gross income. This extra amount is intended to place you on the same financial footing as someone who has purchased similar equipment and can only deduct the depreciation, which is typically less than your lease payments would be.

If you lease a car, you must calculate an inclusion amount for every year you deduct lease payments.

If you lease some other type of listed property, you only need to calculate an inclusion amount if your business usage of the property drops to 50 percent or less for a year. The inclusion amount is added to your income only for that year.

The following worksheet and tables can be used to calculate your inclusion amounts for property other than cars.

inclusion amount worksheet

The file is in rich text format (RTF) that is suitable for use with most word processing programs used in the Windows environment.

For more information, see our discussion of purchasing vs. leasing.