The IRS Audit Blog

Question: Trying to figure fair market value amount of car I used for business purposes for my taxes using Turbo Tax…?

It asks for me to put the FMV and the year the lease originated. In IRS Publication 463 it says to use the capitalized cost if specified on lease agreement. Capitalized cost is the amount of the car plus taxes, etc. I am confused as to whether I should put what I agreed to pay over the term of the lease which was approx. 15K or what the car would have sold for was I actually buying it which was approx 34K since that would have been the FMV of the car at the time, right? Please help. Thanks.

Answer: You need to average it out but a CPA would be able to tell you for sure.

Bigger tax refunds for some

Stimulus plan expands earned income tax credit for certain workers

Related posts

• IRS 463 Publication
• IRS Publication 463
• W9 IRS Form
• Track IRS Refund
• Taxpayer Audit
• Tax Refunds IRS
• Tax Law IRS