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Форма 2106 Інструкції

Інструкція по формуванню 2106, бізнес-експерти

Реп. 2023

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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  
See IRS.gov/Form2106 for the latest 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.  
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  
(defined later in the instructions for line 5).  
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  
aren't deductible. See the line 15 instructions for the  
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  
Internet at GSA.gov/perdiem. At the Per Diem Overview  
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  
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  
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 “Lin  
box 12 of Form W-2. Amounts reported under code “Lare  
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  
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  
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  
the line 15 instructions for the definition of commuting.  
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  
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  
applicable limit explained in the line 36 instructions. Your  
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)