On June 1, 2017, 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 for such leases is $241, determine Norm's gross income inclusion amount.
A)$0
B)$241
C)$907
D)$1,687
E)None of the above

Question

Quizplus · Accepted Answer

The inclusion amount for leased vehicles is calculated based on the IRS table, but it only applies if the fair market value of the vehicle exceeds a certain threshold. Since the problem does not provide the fair market value or indicate that it exceeds the threshold, the inclusion amount is $0.

On June 1, 2017, Norm Leases a Taxi and Places