On June 1,2013,Norm leases a taxi and places it in service.The lease payments are $1,000 per month.Assuming the dollar amount from the IRS table is $241,determine Norm's inclusion amount.
A)$0.
B)$241.
C)$907.
D)$1,687.
E)None of the above.

Question

Quizplus · Accepted Answer

The inclusion amount is calculated by multiplying the IRS table amount by the number of months the vehicle is in service during the tax year. Since Norm placed the taxi in service on June 1, 2013, and assuming the tax year ends on December 31, 2013, the vehicle was in service for 7 months. However, the inclusion amount is only applicable if the fair market value of the leased vehicle exceeds a certain threshold, which is not provided in the question. Therefore, without additional information, the inclusion amount is $0.

On June 1,2013,Norm Leases a Taxi and Places It in Service.The