On June 1, 2018, 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

Since Norm placed the taxi in service on June 1, 2018, and the lease payments are $1,000 per month, the IRS table amount of $241 does not apply to the first year. Therefore, the gross income inclusion amount is $0 for the first year.

On June 1, 2018, Norm Leases a Taxi and Places