Formulář 2106 Pokyny
Pokyny pro formulář 2106, pracovní náklady
Rev. 2023
Související formuláře
- Formulář 2106 - Náklady na zaměstnance
Department of the Treasury
Internal Revenue Service
2023
Instructions for Form 2106
Employee Business Expenses
Section references are to the Internal Revenue Code
unless otherwise noted.
The depreciation limitations for passenger automobiles
placed in service during calendar year 2023 for which no
section 168(k) additional first-year depreciation deduction
applies is $12,200 for the 1st tax year, $19,500 for the 2nd
tax year, $11,700 for the 3rd tax year, and $6,960 for each
succeeding year. (See Rev. Proc. 2023-14.)
Future Developments
related to Form 2106 and its instructions.
What's New
Note. The section 168(k) additional first-year
depreciation deduction is sometimes called special
depreciation allowance.
Standard mileage rate. The 2023 per mile rate for
business use of your vehicle is 65.5 cents (0.655).
Depreciation limits on vehicles. The depreciation limits
apply under section 179 and section 280F.
General Instructions
Under section 179. For tax years beginning in 2023,
the aggregate cost of any section 179 property that a
taxpayer elects to treat as an expense cannot exceed
$1,160,000. The $1,160,000 limitation is reduced (but not
below zero) by the amount by which the cost of section
179 property placed in service during the 2023 tax year
exceeds $2,890,000. The cost of any sport utility vehicle
(SUV) that may be taken into account under section 179
cannot exceed $28,900. (See Rev. Proc. 2022-38.)
Purpose of Form
Use Form 2106 if you were an Armed Forces reservist, a
qualified performing artist, a fee-basis state or local
government official, or an employee with
impairment-related work expenses. Employees who do
not fit into one of the listed categories may not use the
Form 2106 due to the suspension of miscellaneous
itemized deductions subject to the 2% floor under section
67(a). Section 67(g) suspends miscellaneous itemized
deductions for tax years beginning after December 31,
2017, and before January 1, 2026. See the flowchart in
these instructions to find out if you must file this form.
A vehicle subject to section 280F(a) is not considered
an SUV under section 179. (See section 179.)
A deduction allowed under section 179 may be subject
to the limitations of section 280F. (See section 280F.)
Under section 280F. The depreciation limitations for
passenger automobiles acquired after September 27,
2017, and placed in service during calendar year 2023, for
which the section 168(k) additional first-year depreciation
deduction applies, is $20,200 for the 1st tax year, $19,500
for the 2nd tax year, $11,700 for the 3rd tax year, and
$6,960 for each succeeding year.
Excess reimbursements. If you are not a member of
the Armed Forces reserves, a qualified performing artist, a
fee-basis state or local government official, or an
employee with impairment-related work expenses, and
receive reimbursements in excess of your expenses from
your employer’s nonaccountable plan, the excess
Who Must File Form 2106
A
Were you employed during the tax year as an Armed
Forces reservist, a qualiꢀed performing artist, a fee-basis
state or local government ofꢀcial, or an individual with a
disability claiming impairment-related work expenses?
See the line 10 instructions for deꢀnitions.
No
Don’t ꢀle Form 2106 (see Notes below).
Yes
No
B
C
Did you have job-related business expenses?
Don’t ꢀle Form 2106.
Yes
Were you reimbursed for any of your business
expenses (count only reimbursements your employer
didn’t include in box 1 of your Form W-2)?
D
Are you claiming job-related vehicle,
travel, transportation, meals, or
entertainment expenses?
Yes
No
File Form 2106 (see
Notes below).
No
Yes
E
Did you use a vehicle in your job during the
tax year that you also used for business in a
prior year?
Don’t ꢀle Form 2106.
No
F
Are your deductible expenses more than your
reimbursements (count only reimbursements your
employer didn’t include in box 1 of your Form W-2)?
For rules covering employer reporting of reimbursed
expenses, see the instructions for line 7.
No
Don’t ꢀle Form 2106.
Yes
G
Is either (1) or (2) true?
No
Notes
Yes
1. You owned this vehicle and used the actual
expense method in the ꢀrst year you used the
vehicle for business.
2. You used a depreciation method other than
straight line for this vehicle in a prior year.
• Armed Forces reservists, qualiꢀed performing artists,
fee-basis state or local government ofꢀcials, and
individuals with disabilities should see the instructions
for line 10 to ꢀnd out where to deduct employee
expenses.
File Form 2106.
• Form 2106 may be used only by Armed Forces
reservists, qualiꢀed performing artists, fee-basis
state or local government ofꢀcials, and employees
with impairment-related work expenses because of
the suspension of miscellaneous itemized
deductions subject to the 2% ꢁoor under section
67(a) by section 67(g).
Yes
File Form 2106.
Jan 26, 2024
Cat. No. 64188V
reimbursements should be included as wages on your
Form W-2 and your income tax return.
Tax home. Generally, your tax home is your regular or
main place of business or post of duty regardless of where
you maintain your family home. If you don't have a regular
or main place of business because of the nature of your
work, then your tax home may be the place where you
regularly live. If you don't have a regular or a main place of
business or post of duty and there is no place where you
regularly live, you are considered an itinerant (a transient)
and your tax home is wherever you work. As an itinerant,
you are never away from home and can't claim a travel
expense deduction. For more details on the definition of a
tax home, see Pub. 463.
Generally, you can't deduct any expenses for travel
away from your tax home for any period of temporary
employment of more than 1 year. However, this 1-year rule
doesn't apply for a temporary period in which you were a
federal employee certified by the Attorney General (or
designee) as traveling in temporary duty status for the
U.S. Government to investigate or prosecute a federal
crime (or to provide support services for the investigation
or prosecution of a federal crime).
Incidental expenses. The term “incidental expenses”
means fees and tips given to porters, baggage carriers,
hotel staff, and staff on ships.
Incidental expenses don't include expenses for laundry,
cleaning and pressing of clothing, lodging taxes, costs of
telegrams or telephone calls, transportation between
places of lodging or business and places where meals are
taken, or the mailing cost of filing travel vouchers and
paying employer-sponsored charge card billings.
Recordkeeping
You can't deduct expenses for travel (including meals
unless you used the standard meal allowance), gifts, or
use of a car or other listed property unless you keep
records to prove the time, place, business purpose,
business relationship (for gifts), and amounts of these
expenses. Generally, you must also have receipts for all
lodging expenses (regardless of the amount) and any
other expense of $75 or more. See section 274(d) and
Regulations sections 1.274-5 and 1.274-5T.
Additional Information
For more details about employee business expenses, see
the following.
Pub. 463, Travel, Gift, and Car Expenses.
Pub. 529, Miscellaneous Deductions.
Pub. 587, Business Use of Your Home.
Pub. 946, How To Depreciate Property.
•
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Specific Instructions
Part I—Employee Business Expenses
and Reimbursements
Fill in all of Part I if you were reimbursed for employee
business expenses. If you weren't reimbursed for your
expenses, complete steps 1 and 3 only.
You can use an optional method (instead of actual cost)
for deducting incidental expenses only. The amount of the
deduction is $5 a day. You can use this method only if you
didn't pay or incur any meal expenses. You can't use this
method on any day you use the standard meal allowance
Line 4. Enter other job-related expenses not listed on any
other line of this form. Include expenses for business gifts,
education (tuition, fees, and books), trade publications,
etc. For details, including limits, see Pub. 463 and Pub.
529.
Step 1—Enter Your Expenses
Line 1. If you were a rural mail carrier, you can treat the
amount of qualified reimbursement you received as the
amount of your allowable expense. Because the qualified
reimbursement is treated as paid under an accountable
plan, your employer shouldn't include the amount of
reimbursement in your income.
You were a rural mail carrier if you were an employee of
the United States Postal Service (USPS) who performed
services involving the collection and delivery of mail on a
rural route.
Qualified reimbursements. These are the amounts
paid by the USPS as an equipment maintenance
allowance under a collective bargaining agreement
between the USPS and the National Rural Letter Carriers'
Association, but only if such amounts don't exceed the
amount that would have been paid under the 1991
collective bargaining agreement (adjusted for changes in
the Consumer Price Index since 1991 as detailed in
section 162(o)(3)).
If you are deducting depreciation or claiming a section
179 deduction, see Form 4562, Depreciation and
Amortization, to figure the depreciation and section 179
deduction to enter on Form 2106,
line 4.
Don't include on line 4 any educator expenses you
deducted on Schedule 1 (Form 1040), line 11.
You may be able to take a credit for your
educational expenses instead of a deduction. See
Form 8863, Education Credits, for details.
TIP
If you were a rural mail carrier, do not use Form
2106. Your employer should not include the
!
Don't include expenses for meals, taxes, or interest on
line 4. See the Schedule A (Itemized Deductions) for your
return to see whether you can deduct taxes or interest
expenses.
CAUTION
amount of reimbursement in your income.
Line 2. The expenses of commuting to and from work
definition of commuting.
Line 3. Enter lodging and transportation expenses
connected with overnight travel away from your tax home
(defined next). Don't include expenses for meals. For
more details, including limits, see Pub. 463.
Note. If line 4 is your only entry, don't complete Form
2106 unless you are claiming:
Performing-arts-related business expenses as a
•
qualified performing artist,
2
Instructions for Form 2106 (2023)
Expenses for performing your job as a fee-basis state or
If these payments were incorrectly included in box 1,
ask your employer for a corrected Form W-2.
•
local government official, or
Impairment-related work expenses as an individual with
•
Accounting to your employer. This means that you
gave your employer documentary evidence in the form of
a statement of expense, account book, diary, log,
statement of expenses, trip sheets, or similar statement to
verify the amount, time, place, and business purpose of
each expense. You are also treated as having accounted
for your expenses if either of the following applies.
a disability.
Note. No deduction is allowed for certain entertainment
expenses, membership dues, and facilities used in
connection with these activities for amounts paid or
incurred after 2017. See section 274.
Line 5. Enter your allowable meals expense. Include
meals while away from your tax home overnight and other
business meals.
Standard meal allowance. Instead of actual cost, you
may be able to claim the standard meal allowance for your
daily meals and incidental expenses (M&IE) while away
from your tax home overnight. Under this method, instead
of keeping records of your actual meal expenses, you
deduct a specified amount, depending on where you
travel. However, you must still keep records to prove the
time, place, and business purpose of your travel.
The standard meal allowance is the federal M&IE rate.
You can find the rates that applied during 2023 on the
page, select “2023” for the rates in effect for the period
January 1, 2023–September 30, 2023. Select “Fiscal Year
2024” for the period October 1, 2023–December 31, 2023.
However, you can apply the rates in effect before October
1, 2023, for expenses of all travel within the United States
for 2023 instead of the updated rates. For the period
October 1, 2023–December 31, 2023, you must
Your employer gave you a fixed travel allowance that is
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similar in form to the per diem allowance specified by the
federal government and you verified the time, place, and
business purpose of the travel for that day.
Your employer reimbursed you for vehicle expenses at
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the standard mileage rate or according to a flat rate or
stated schedule, and you verified the date of each trip,
mileage, and business purpose of the vehicle use.
See Pub. 463 for more details.
Allocating your reimbursement. If your employer
paid you a single amount that covers meals as well as
other business expenses, you must allocate the
reimbursement so that you know how much to enter in
column A and column B of line 7. Use the following
worksheet to figure this allocation.
Reimbursement Allocation Worksheet
(keep for your records)
1. Enter the total amount of reimbursements
your employer gave you that weren't
reported to you
consistently use either the rates for the first 9 months of
2023 or the updated rates.
The Department of Defense sets rates for Alaska,
Hawaii, and U.S. associated territories. See travel.dod.mil/
in box 1 of Form W-2 . . . . . . . . . . . . . .
2. Enter the total amount of your expenses for
the periods covered by this
reimbursement . . . . . . . . . . . . . . . . . .
3. Enter the part of the amount on line 2 that
was your total expense for meals . . . . . .
The State Department sets foreign rates. See
4. Divide line 3 by line 2.
Enter the result as a decimal (rounded to
three places) . . . . . . . . . . . . . . . . . . .
See Pub. 463 for details on how to figure your
deduction using the standard meal allowance, including
special rules for partial days of travel and transportation
workers.
.
5. Multiply line 1 by line 4. Enter the result here
and
in column B, line 7 . . . . . . . . . . . . . . .
Step 2—Enter Reimbursements Received From
Your Employer for Expenses Listed in Step 1
6. Subtract line 5 from line 1. Enter the result
here and
in column A, line 7 . . . . . . . . . . . . . . .
Line 7. Enter reimbursements received from your
employer (or third party) for expenses shown in Step 1
that weren't reported to you in box 1 of your Form W-2.
This includes reimbursements reported under code “L” in
box 12 of Form W-2. Amounts reported under code “L” are
reimbursements you received for business expenses that
weren't included as wages on Form W-2 because the
expenses met specific IRS substantiation requirements.
Step 3—Figure Expenses To Deduct
Line 9. Generally, you can deduct only 50% of your
business meal expenses, including meals incurred while
away from home on business. Meals that are not
separately stated from entertainment are generally
nondeductible.
Generally, when your employer pays for your expenses,
the payments shouldn't be included in box 1 of your Form
W-2 if, within a reasonable period of time, you:
Line 10. If you are one of the individuals discussed
below, special rules apply to deducting your employee
business expenses.
Armed Forces reservist (member of a reserve
component). You are a member of a reserve component
of the Armed Forces of the United States if you are in the
Army, Navy, Marine Corps, Air Force, or Coast Guard
Reserve; the Army National Guard of the United States;
Accounted to your employer for the expenses; and
Were required to return, and did return, any payment
•
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not spent (or considered not spent) for business
expenses.
Instructions for Form 2106 (2023)
3
the Air National Guard of the United States; or the
Reserve Corps of the Public Health Service.
Schedule A (Form 1040), line 16 (or Schedule A (Form
1040-NR), line 7).
If you qualify, complete Form 2106 and include the part
of the line 10 amount attributable to the expenses for
travel more than 100 miles away from home in connection
with your performance of services as a member of the
reserves on Schedule 1 (Form 1040), line 12, and attach
Form 2106 to your return. The amount of expenses you
can deduct on Schedule 1 (Form 1040), line 12, is limited
to the regular federal per diem rate (for lodging, meals,
and incidental expenses) and the standard mileage rate
(for car expenses), plus any parking fees, ferry fees, and
tolls. These reserve-related travel expenses are
deductible whether or not you itemize deductions. See
Pub. 463 for additional details on how to report these
expenses.
Part II—Vehicle Expenses
There are two methods for figuring vehicle expenses—the
standard mileage rate and the actual expense method.
You can use the standard mileage rate for 2023 only if:
You owned the vehicle and used the standard mileage
•
rate for the first year you placed the vehicle in service, or
You leased the vehicle and are using the standard
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mileage rate for the entire lease period (except the period,
if any, before 1998).
You can't use actual expenses for a leased vehicle if
you previously used the standard mileage rate for that
vehicle.
Fee-basis state or local government official. You
are a qualifying fee-basis official if you are employed by a
state or political subdivision of a state and are
If you have the option of using either the standard
mileage rate or actual expense method, you should figure
your expenses both ways to find the method most
beneficial to you. But when completing Form 2106, fill in
only the sections that apply to the method you choose.
compensated, in whole or in part, on a fee basis.
If you qualify, include the part of the line 10 amount
attributable to the expenses you paid or incurred for
services performed in that job in the total on Schedule 1
(Form 1040), line 12, and attach Form 2106 to your return.
These employee business expenses are deductible
whether or not you itemize deductions.
If you were a rural mail carrier and received an
equipment maintenance allowance, see the line 1
instructions.
Qualified performing artist. You are a qualified
For more information on the standard mileage rate and
actual expenses, see Pub. 463.
performing artist if you:
1. Performed services in the performing arts as an
employee for at least two employers during the tax year,
Section A—General Information
If you used two vehicles for business during the year, use
a separate column in Sections A, C, and D for each
vehicle. If you used more than two vehicles, complete and
attach a second Form 2106, page 2.
2. Received from at least two of those employers
wages of $200 or more per employer,
3. Had allowable business expenses attributable to the
performing arts of more than 10% of gross income from
the performing arts, and
Line 11. Date placed in service is generally the date you
first start using your vehicle. However, if you first start
using your vehicle for personal use and later convert it to
business use, the vehicle is treated as placed in service
on the date you start using it for business.
Line 12. Enter the total number of miles you drove each
vehicle during 2023.
Change from personal to business use. If you
converted your vehicle during the year from personal to
business use (or vice versa) and you don't have mileage
records for the time before the change to business use,
enter the total number of miles driven after the change to
business use.
Line 13. Don't include commuting miles on this line;
commuting miles aren't considered business miles. See
4. Had adjusted gross income of $16,000 or less
before deducting expenses as a performing artist.
In addition, if you are married, you must file a joint return
unless you lived apart from your spouse for all of 2023. If
you file a joint return, you must figure requirements (1),
(2), and (3) separately for both you and your spouse.
However, requirement (4) applies to the combined
adjusted gross income of both you and your spouse.
If you meet all the requirements for a qualified
performing artist, include the part of the line 10 amount
attributable to performing-arts-related expenses in the
total on Schedule 1 (Form 1040), line 12, and attach Form
2106 to your return. Your performing-arts-related business
expenses are deductible whether or not you itemize
deductions.
Disabled employee with impairment-related work
expenses. Impairment-related work expenses are the
allowable expenses of an individual with physical or
mental disabilities for attendant care at his or her place of
employment. They also include other expenses in
connection with the place of employment that enable the
employee to work. See Pub. 463 for more details.
Line 14. Divide line 13 by line 12 to figure your business
use percentage.
Change from personal to business use. If you
entered on line 12 the total number of miles driven after
the change to business use, multiply the percentage you
figured by the number of months you drove the vehicle for
business and divide the result by 12.
If you qualify, enter the part of the line 10 amount
Line 15. Enter your average daily round-trip commuting
distance. If you went to more than one work location,
figure the average.
attributable to impairment-related work expenses on
4
Instructions for Form 2106 (2023)
Commuting. Generally, commuting is travel between
your home and a work location. However, travel that meets
any of the following conditions isn't commuting.
Section C—Actual Expenses
Line 23. Enter your total annual expenses for gasoline,
oil, repairs, insurance, tires, license plates, and similar
items. Don't include state and local personal property
taxes or interest expense you paid. Deduct state and local
personal property taxes on Schedule A (Form 1040),
line 5c. Employees can't deduct car loan interest.
Line 24a. If, during 2023, you rented or leased a vehicle
instead of using your own vehicle, enter the cost of
renting. Also, include on this line any temporary rentals,
such as when your car was being repaired, except for
amounts included on line 3.
Line 24b. If you leased a vehicle for a term of 30 days or
more, you may have to reduce your deduction for vehicle
lease payments by an amount called the inclusion
amount. You may have an inclusion amount for a
passenger automobile if:
You have at least one regular work location away from
•
your home and the travel is to a temporary work location in
the same trade or business, regardless of the distance.
Generally, a temporary work location is one where your
employment is expected to last 1 year or less. See Pub.
463 for more details.
The travel is to a temporary work location outside the
•
metropolitan area where you live and normally work.
Your home is your principal place of business under
•
section 280A(c)(1)(A) (for purposes of deducting
expenses for business use of your home) and the travel is
to another work location in the same trade or business,
regardless of whether that location is regular or temporary
and regardless of distance.
Line 16. If you don't know the total actual miles you used
your vehicle for commuting during the year, figure the
amount to enter on line 16 by multiplying the number of
days during the year that you used each vehicle for
commuting by the average daily round-trip commuting
distance in miles. However, if you converted your vehicle
during the year from personal to business use (or vice
versa), enter your commuting miles only for the period you
drove your vehicle for business.
Passenger Automobiles (Including Trucks and Vans)
And the vehicle's fair market
value on the first day of the
lease exceeded:
The lease term began in:
2023
2022
2021
2020
2019
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$ 60,000 (See Rev. Proc. 2023-14)
$ 56,000 (See Rev. Proc. 2022-17)
$ 51,000 (See Rev. Proc. 2021-31)
$ 50,000 (See Rev. Proc. 2020-37)
$ 50,000 (See Rev. Proc. 2019-26)
Section B—Standard Mileage Rate
You may be able to use the standard mileage rate instead
of actual expenses to figure the deductible costs of
operating a passenger vehicle, including a van, an SUV, a
pickup, or a panel truck.
See Pub. 463 for leases beginning before 2019.
See Pub. 463 to figure the inclusion amount.
Line 25. If during 2023 your employer provided a vehicle
for your business use and included 100% of its annual
lease value in box 1 of your Form W-2, enter this amount
on line 25. If less than 100% of the annual lease value was
included in box 1 of your Form W-2, skip line 25.
If you want to use the standard mileage rate for a
vehicle you own, you must do so in the first year you place
your vehicle in service. In later years, you can deduct
actual expenses instead, but you must use straight line
depreciation.
Line 28. If you completed Section D, enter the amount
from line 38. If you used Form 4562 to figure your
depreciation deduction, enter the total of the following
amounts.
If you lease your vehicle, you can use the standard
mileage rate, but only if you use the rate for the entire
lease period (except for the period, if any, before January
1, 1998).
Depreciation allocable to your vehicle(s) (from Form
•
4562, line 28).
If you use more than two vehicles, complete and attach
a second Form 2106, page 2, providing the information
requested in lines 11 through 22. Be sure to include the
amount from line 22 of both pages in the total on Form
2106, line 1. You may not use the standard mileage rate to
compute the deductible expenses of five or more vehicles
you own or lease simultaneously (such as in fleet
operations).
Any section 179 deduction allocable to your vehicle(s)
•
(from Form 4562, line 29).
Section D—Depreciation of Vehicles
Depreciation is an amount you can deduct to recover the
cost or other basis of your vehicle over a certain number
of years. In some cases, you can claim a special
depreciation allowance or elect to expense, under section
179, part of the cost of your vehicle in the year of
purchase. For details, see Pub. 463.
You can also deduct state and local personal property
taxes. Enter these taxes on Schedule A (Form 1040),
line 5c. (Personal property taxes aren't deductible on Form
1040-NR.)
Line 30. Enter the vehicle's actual cost or other basis.
Don't reduce your basis by any prior year's depreciation.
However, you must reduce your basis by any deductible
casualty loss, deduction for clean-fuel vehicle, gas guzzler
tax, alternative motor vehicle credit, or qualified plug-in
electric vehicle credit you claimed. Increase your basis by
any sales tax paid (unless you deducted sales taxes in the
If you are claiming the standard mileage rate for
mileage driven in more than one business activity, you
must figure the deduction for each business on a separate
form or schedule (for example, Form 2106; Schedule C
(Form 1040), Profit or Loss From Business; Schedule E
(Form 1040), Supplemental Income and Loss; or
Schedule F (Form 1040), Profit or Loss From Farming).
Instructions for Form 2106 (2023)
5
year you purchased your vehicle) and any substantial
improvements to your vehicle.
If you traded in your vehicle, the special rules for
determining depreciation when you trade in one vehicle
for another vehicle no longer apply.
If you converted the vehicle from personal use to
business use, your basis for depreciation is the smaller of
the vehicle's adjusted basis or its fair market value on the
date of conversion.
Line 31. Enter the amount of any section 179 deduction
and, if applicable, any special depreciation allowance
claimed for this year.
Section 179 deduction. If 2023 is the first year your
vehicle was placed in service and the percentage on
line 14 is more than 50%, you can elect to deduct as an
expense a portion of the cost (subject to a yearly limit).
This cost is sometimes referred to as the “Section 179
basis.” To figure this section 179 deduction, multiply the
part of the cost of the vehicle that you choose to expense
by the percentage on line 14. The total of your
Designed to have a seating capacity of more than nine
•
persons behind the driver's seat;
Equipped with a cargo area of at least 6 feet in interior
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length that is an open area or is designed for use as an
open area but is enclosed by a cap and isn't readily
accessible directly from the passenger compartment; or
That has an integral enclosure, fully enclosing the driver
•
compartment and load carrying device, doesn't have
seating rearward of the driver's seat, and has no body
section protruding more than 30 inches ahead of the
leading edge of the windshield.
Special depreciation allowance. The special
depreciation allowance applies only for the first year a
vehicle is placed in service. See section 168(k) and
Revenue Procedure 2023 -14. For 2023, your total section
179 deduction, special depreciation allowance, and
regular depreciation deduction can't be more than
$20,200 for passenger automobiles, multiplied by your
business use percentage on line 14. See the line 36
instructions for depreciation limits. You can't recover the
amount by which your depreciation deduction exceeds the
depreciation limits for the year placed in service until after
the end of the recovery period for your vehicle.
depreciation and section 179 deduction generally can't be
more than the percentage on line 14 multiplied by the
section 179 deduction for the year can't be more than the
income from your job and any other active trade or
business on your Form 1040 or 1040-SR.
Use the following worksheet to figure the amount of the
special depreciation allowance.
Worksheet for the Special Depreciation Allowance
If you are claiming a section 179 deduction on
(keep for your records)
other property, or you placed more than
!
CAUTION
1. Enter the total amount from Form 2106,
$2,890,000 of section 179 property in service
line 30 . . . . . . . . . . . . . . . . . . . . . . . .
during the year, use Form 4562 to figure your section 179
deduction. Enter the amount of the section 179 deduction
allocable to your vehicle from Form 4562, line 12, on Form
2106, line 31.
2. Multiply line 1 by the percentage on Form
2106, line 14, and enter the result . . . . . .
3. Enter any section 179 deduction . . . . . . .
4. Subtract line 3 from line 2 . . . . . . . . . . . .
Example.
Section 179 basis . . . . . . . . . . . . . . . . . . . . . . .
$25,000
5. Multiply the applicable limit explained in the
line 36 instructions by the percentage on
Form 2106, line 14, and enter the result . .
Limit on depreciation and section 179
deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$20,200*
6. Subtract line 3 from line 5 . . . . . . . . . . . .
Smaller of:
7. Enter the smaller of line 4 or line 6. Add the
result to any section 179 deduction (line 3
above) and enter the total on Form 2106,
line 31 . . . . . . . . . . . . . . . . . . . . . . . .
Section 179 basis, or limit on
depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . .
$20,200
× 0.75
Percentage on line 14 . . . . . . . . . . . . . . . . . . .
Section 179 deduction . . . . . . . . . . . . . . . . . . .
$15,150
Election out. You can elect not to claim the special
depreciation allowance for your vehicle. If you make this
election, it applies to all property in the same class placed
in service during the year.
To make the election, attach a statement to your timely
filed return (including extensions) indicating that you are
electing not to claim the special depreciation allowance
and the class of property for which you are making the
election.
Line 32. To figure the basis for depreciation, multiply
line 30 by the percentage on line 14. From that result,
subtract the total amount of any section 179 deduction
and special depreciation allowance claimed this year (see
line 31) or any section 179 deduction and special
* $12,200 if electing out of special depreciation allowance or not
qualified property.
Limit for sport utility and certain other vehicles.
For sport utility and certain other vehicles placed in
service in 2023, the portion of the vehicle's cost taken into
account in figuring your section 179 deduction is limited to
$28,900. This rule applies to any 4-wheeled vehicle
primarily designed or used to carry passengers over
public streets, roads, or highways that isn't subject to any
of the passenger automobile limits explained in the line 36
instructions and is rated at no more than 14,000 pounds
gross vehicle weight. However, the $28,900 limit doesn't
apply to any vehicle:
6
Instructions for Form 2106 (2023)
Depreciation Method and Percentage Chart—Line 33
Date Placed in Service
Oct. 1 – Dec. 31, 2023
(a)1
200 DB
(b)1
150 DB
(c)
5.0%
3.75%
SL
2.5%
Jan. 1 – Sept. 30, 2023
Oct. 1 – Dec. 31, 2022
Jan. 1 – Sept. 30, 2022
Oct. 1 – Dec. 31, 2021
Jan. 1 – Sept. 30, 2021
Oct. 1 – Dec. 31, 2020
Jan. 1 – Sept. 30, 2020
Oct. 1 – Dec. 31, 2019
Jan. 1 – Sept. 30, 2019
Oct. 1 – Dec. 31, 2018
Jan. 1 – Sept. 30, 2018
Prior to 20182
200 DB 20.0
200 DB 38.0
200 DB 32.0
200 DB 22.8
200 DB 19.2
200 DB 13.68
200 DB 11.52
200 DB 10.94
200 DB 11.52
150 DB 15.0
150 DB 28.88
150 DB 25.5
150 DB 20.21
150 DB 17.85
150 DB 16.4
150 DB 16.66
150 DB 16.41
150 DB 16.66
150 DB 14.35
SL 10.0
SL 20.0
SL 20.0
SL 20.0
SL 20.0
SL 20.0
SL 20.0
SL 20.0
SL 20.0
SL 17.5
SL 10.0
200 DB
200 DB
9.58
5.76
150 DB
8.33
1 You can use this column only if the business use of your car is more than 50%.
2 If your car was subject to the maximum limits for depreciation and you have unrecovered basis in the car, you can continue to claim depreciation.
See Pub. 463 for more information.
depreciation allowance claimed in any previous year for
this vehicle.
Alternative Minimum Tax. This may result in a smaller tax
liability if you must file Form 6251, Alternative Minimum
Tax—Individuals.
Column (c)—straight line method. You must use
column (c) if the business use percentage on line 14 is
50% or less. The method for these vehicles is the straight
line method over 5 years. The use of this column is
optional for these vehicles if the business use percentage
on line 14 is more than 50%.
Line 33. If you used the standard mileage rate in the first
year the vehicle was placed in service and now elect to
use the actual expense method, you must use the straight
line method of depreciation for the vehicle's estimated
useful life. Otherwise, use the Depreciation Method and
Percentage Chart, later, to find the depreciation method
and percentage to enter on line 33.
To use the chart, first find the date you placed the
vehicle in service (line 11). Then, select the depreciation
method and percentage from column (a), (b), or (c). For
example, if you placed a car in service on July 1, 2023,
and you use the method in column (a), enter “200 DB
20%” on line 33.
For vehicles placed in service before 2023, use the
same method you used on last year's return unless a
decline in your business use requires a change to the
straight line method. For vehicles placed in service during
2023, select the depreciation method and percentage
after reading the explanation for each column.
Column (a)—200% declining balance method. You
can use column (a) only if the business use percentage on
line 14 is more than 50%. Of the three depreciation
methods, the 200% declining balance method may give
you the largest depreciation deduction for the first 3 years
(after considering the depreciation limit for your vehicle).
See the depreciation limit tables, later.
Column (b)—150% declining balance method. You
can use column (b) only if the business use percentage on
line 14 is more than 50%. The 150% declining balance
method may give you a smaller depreciation deduction
than in column (a) for the first 3 years. However, you won't
have a “depreciation adjustment” on this vehicle for the
Note. If your vehicle was used more than 50% for
business in the year it was placed in service and used
50% or less in a later year, part of the depreciation,
section 179 deduction, and special depreciation
allowance previously claimed may have to be added back
to your income in the later year. Figure the amount to be
included in income in Part IV of Form 4797, Sales of
Business Property.
More information. For more information on
depreciating your vehicle, see Pub. 463.
If you placed other business property in service in
the same year you placed your vehicle in service
!
CAUTION
or you used your vehicle mainly within an Indian
reservation, you may not be able to use the chart. See
Pub. 946 to figure your depreciation.
Line 34. If you sold or exchanged your vehicle during the
year, use the following instructions to figure the amount to
enter on line 34.
If your vehicle was placed in service:
1. Before 2018, enter the result of multiplying line 32
by the percentage on line 33;
Instructions for Form 2106 (2023)
7
2. After 2017, from January 1 through September 30,
enter the amount figured by multiplying the result in (1) by
50%; or
3. After 2017, from October 1 through December 31,
enter the amount figured by multiplying the result in (1) by
the percentage shown below for the month you disposed
of the vehicle.
Rev. Proc. 2023-14 Table 1: Depreciation
Limitations for Passenger Automobiles Acquired
After September 27, 2017, and Placed in Service
During Calendar Year 2023, for Which the Section
168(k) Additional First-Year Depreciation
Deduction Applies
Tax Year
Amount
$ 20,200
$ 19,500
$ 11,700
$ 6,960
Month of Disposal
Percentage
1st Tax Year
Jan., Feb., March . . . . . . . . . . . . . . .
April, May, June . . . . . . . . . . . . . . . .
July, Aug., Sept. . . . . . . . . . . . . . . . .
Oct., Nov., Dec. . . . . . . . . . . . . . . . .
12.5%
37.5%
62.5%
87.5%
2nd Tax Year
3rd Tax Year
Each Succeeding Year
Rev. Proc. 2023-14 Table 2: Depreciation
Limitations for Passenger Automobiles Placed in
Service During Calendar Year 2023 for Which No
Section 168(k) Additional First-Year Depreciation
Deduction Applies
Line 36. See the tables shown here to determine the
depreciation limitation for passenger automobiles placed
in service in 2023. See the tables in Pub. 463 to determine
the depreciation limitation for passenger automobiles
placed in service before 2023.
A passenger automobile is a 4-wheeled vehicle
•
Tax Year
Amount
$ 12,200
$ 19,500
$ 11,700
$ 6,960
manufactured primarily for use on public roads that is
rated at 6,000 pounds unloaded gross vehicle weight or
less. Certain vehicles, such as ambulances, hearses, and
taxicabs, aren't considered passenger automobiles and
aren't subject to the line 36 limits. See Pub. 463 for more
details.
1st Tax Year
2nd Tax Year
3rd Tax Year
Each Succeeding Year
A truck or van is a passenger automobile that is
•
classified by the manufacturer as a truck or van, and that
is rated at 6,000 pounds gross vehicle weight or less.
Paperwork Reduction Act Notice. For the Paperwork
Reduction Act Notice, see your tax return instructions.
If your vehicle isn't subject to any of the line 36 limits,
skip lines 36 and 37, and enter the amount from line 35 on
line 38.
8
Instructions for Form 2106 (2023)