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Department of the Treasury
Internal Revenue Service
2022

Instructions for Form 2106

Employee Business Expenses

Section references are to the Internal which no section 168(k) additional first later to find out if you must file this
Revenue Code unless otherwise noted. year depreciation deduction applies is form.
$11,200 for the 1st tax year, $18,000
Excess reimbursements. If you are
Future Developments for the 2nd tax year, $10,800 for the
not a member of the Armed Forces
For the latest developments related to 3rd tax year, and $6,460 for each
reserves, a qualified performing artist,
Form 2106 and its instructions, such succeeding year.
a fee-basis state or local government
as legislation enacted after they were For qualified property acquired and official, or an employee with
published, go to IRS.gov/Form2106. placed in service after September 27, impairment-related work expenses,
2017, section 168(k) increases the and receive reimbursements in
What's New first-year depreciation allowed under excess of your expenses from your
Standard mileage rate. The 2022 section 280F by $8,000. The section employer’s nonaccountable plan, the
per mile rate for business use of your 168(k) additional first year excess reimbursements should be
vehicle is 58.5 cents (0.585) from depreciation deduction does not apply included in your wages (in box 1 of
January 1, 2022, to June 30, 2022, for 2022 if you (1) did not use the Form W-2) and reported on line 1 of
and 62.5 cents (0.625) from July 1, passenger automobile during 2022 your Form 1040 or 1040-SR.
2022, to December 31, 2022. more than 50% for business
purposes; (2) elected out of the
Depreciation limits on vehicles. Recordkeeping
section 168(k) additional first year
The depreciation limits apply under You can't deduct expenses for travel
depreciation deduction for the class of
section 179 and section 280F. (including meals unless you used the
property that includes passenger standard meal allowance), gifts, or
Under section 179. For tax years automobiles; (3) acquired the use of a car or other listed property
beginning in 2022, the aggregate cost passenger automobile used and the unless you keep records to prove the
of any section 179 property that a acquisition did not meet the time, place, business purpose,
taxpayer elects to treat as an expense acquisition requirements in section business relationship (for gifts), and
cannot exceed $1,080,000. The 168(k) and Regulations section amounts of these expenses.
$1,080,000 limitation is reduced (but 1.168(k)-2; or (4) acquired the Generally, you must also have
not below zero) by the amount by passenger automobile before receipts for all lodging expenses
which the cost of section 179 property September 28, 2017, and placed it in (regardless of the amount) and any
placed in service during the 2022 tax service after 2019. (See Rev. Proc. other expense of $75 or more. See
year exceeds $2,700,000. The cost of 2022-17.) section 274(d) and Regulations
any sport utility vehicle (SUV) that sections 1.274-5 and 1.274-5T.
may be taken into account under Note. The section 168(k) additional
section 179 cannot exceed $27,000. first year depreciation deduction is
(See Rev. Proc. 2021-45.) sometimes called special depreciation Additional Information
allowance. For more details about employee
A vehicle subject to section business expenses, see the following.
280F(a) is not considered an SUV • Pub. 463, Travel, Gift, and Car
under section 179. (See section 179.) General Instructions Expenses.
A deduction allowed under section • Pub. 529, Miscellaneous
179 may be subject to the limitations Purpose of Form Deductions.
of section 280F. (See section 280F.) Use Form 2106 if you were an Armed • Pub. 587, Business Use of Your
Forces reservist, a qualified Home.
Under section 280F. The performing artist, a fee-basis state or • Pub. 946, How To Depreciate
depreciation limitations for passenger local government official, or an Property.
automobiles acquired after employee with impairment-related
September 27, 2017, and placed in work expenses. Employees who do
service during calendar year 2022, for not fit into one of the listed categories Specific Instructions
which the section 168(k) additional may not use the Form 2106 due to the
first year depreciation deduction suspension of miscellaneous itemized Part I—Employee
applies, is $19,200 for the 1st tax deductions subject to the 2% floor Business Expenses and
year, $18,000 for the 2nd tax year, under section 67(a). Section 67(g) Reimbursements
$10,800 for the 3rd tax year, and suspends miscellaneous itemized Fill in all of Part I if you were
$6,460 for each succeeding year. deductions for tax years beginning reimbursed for employee business
The depreciation limitations for after December 31, 2017, and before expenses. If you weren't reimbursed
passenger automobiles placed in January 1, 2026. See the flowchart
service during calendar year 2022 for

Jan 6, 2023 Cat. No. 64188V

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for your expenses, complete steps 1 would have been paid under the 1991 home may be the place where you
and 3 only. collective bargaining agreement regularly live. If you don't have a
(adjusted for changes in the regular or a main place of business or
Step 1—Enter Your Expenses Consumer Price Index since 1991 as post of duty and there is no place
Line 1. If you were a rural mail detailed in section 162(o)(3)). where you regularly live, you are
considered an itinerant (a transient)
carrier, you can treat the amount of If you were a rural mail carrier,
and your tax home is wherever you
qualified reimbursement you received ! do not use Form 2106. Your work. As an itinerant, you are never
as the amount of your allowable CAUTION employer should not include
away from home and can't claim a
expense. Because the qualified the amount of reimbursement in your
travel expense deduction. For more
reimbursement is treated as paid income.
under an accountable plan, your details on the definition of a tax home,
employer shouldn't include the Line 2. The expenses of commuting see Pub. 463.
amount of reimbursement in your to and from work aren't deductible. Generally, you can't deduct any
income. See the line 15 instructions for the expenses for travel away from your
You were a rural mail carrier if you definition of commuting. tax home for any period of temporary
were an employee of the United employment of more than 1 year.
Line 3. Enter lodging and
States Postal Service (USPS) who However, this 1-year rule doesn't
transportation expenses connected
performed services involving the apply for a temporary period in which
with overnight travel away from your
collection and delivery of mail on a you were a federal employee certified
tax home (defined next). Don't include
rural route. by the Attorney General (or designee)
expenses for meals. For more details,
as traveling in temporary duty status
Qualified reimbursements. including limits, see Pub. 463.
for the U.S. Government to investigate
These are the amounts paid by the or prosecute a federal crime (or to
Tax home. Generally, your tax
USPS as an equipment maintenance provide support services for the
home is your regular or main place of
allowance under a collective investigation or prosecution of a
business or post of duty regardless of
bargaining agreement between the federal crime).
where you maintain your family home.
USPS and the National Rural Letter
If you don't have a regular or main
Carriers' Association, but only if such Incidental expenses. The term
place of business because of the
amounts don't exceed the amount that “incidental expenses” means fees and
nature of your work, then your tax

Who Must File Form 2106
A Were you employed as an Armed Forces reservist,
a qualied performing artist, a fee-basis state or
local government ofcial, or an individual with a No
Don’t le Form 2106 (see Notes below).
disability claiming impairment-related work
expenses? See the line 10 instructions for denitions.
Yes
B Did you have job-related business expenses? No Don’t le Form 2106.
Yes
C Were you reimbursed for any of your business No D Are you claiming job-related vehicle, Yes
expenses (count only reimbursements your employer travel, transportation, meals, or
didn’t include in box 1 of your Form W-2)? entertainment expenses?
File Form 2106 (see
Yes No Notes below).

E Did you use a vehicle in your job in 2022 that No Don’t le Form 2106.
you also used for business in a prior year?

F Are your deductible expenses more than your
reimbursements (count only reimbursements your No
employer didn’t include in box 1 of your Form W-2)?
For rules covering employer reporting of reimbursed
Yes expenses, see the instructions for line 7. Don’t le Form 2106.

G Is either (1) or (2) true? No Yes Notes
1. You owned this vehicle and used the actual • Armed Forces reservists, qualied performing artists,
expense method in the rst year you used the fee-basis state or local government ofcials, and
vehicle for business. File Form 2106. individuals with disabilities should see the instructions
2. You used a depreciation method other than for line 10 to nd out where to deduct employee
straight line for this vehicle in a prior year. expenses.
• Form 2106 may be used only by Armed Forces
Yes reservists, qualied performing artists, fee-basis state
or local government ofcials, and employees with
File Form 2106. 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).

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tips given to porters, baggage Note. No deduction is allowed for Step 2—Enter Reimbursements
carriers, hotel staff, and staff on ships. certain entertainment expenses, Received From Your Employer
Incidental expenses don't include membership dues, and facilities used for Expenses Listed in Step 1
expenses for laundry, cleaning and in connection with these activities for
pressing of clothing, lodging taxes, amounts paid or incurred after 2017. Line 7. Enter reimbursements
costs of telegrams or telephone calls, See section 274. received from your employer (or third
party) for expenses shown in Step 1
transportation between places of Line 5. Enter your allowable meals
that weren't reported to you in box 1 of
lodging or business and places where expense. Include meals while away
your Form W-2. This includes
meals are taken, or the mailing cost of from your tax home overnight and
reimbursements reported under code
filing travel vouchers and paying other business meals.
employer-sponsored charge card “L” in box 12 of Form W-2. Amounts
billings. Standard meal allowance. reported under code “L” are
Instead of actual cost, you may be reimbursements you received for
You can use an optional method business expenses that weren't
able to claim the standard meal
(instead of actual cost) for deducting included as wages on Form W-2
allowance for your daily meals and
incidental expenses only. The amount because the expenses met specific
incidental expenses (M&IE) while
of the deduction is $5 a day. You can IRS substantiation requirements.
away from your tax home overnight.
use this method only if you didn't pay
Under this method, instead of keeping
or incur any meal expenses. You can't Generally, when your employer
records of your actual meal expenses,
use this method on any day you use pays for your expenses, the payments
you deduct a specified amount,
the standard meal allowance (defined shouldn't be included in box 1 of your
depending on where you travel.
later in the instructions for line 5). Form W-2 if, within a reasonable
However, you must still keep records period of time, you:
Line 4. Enter other job-related to prove the time, place, and business • Accounted to your employer for the
expenses not listed on any other line purpose of your travel. expenses; and
of this form. Include expenses for The standard meal allowance is the • Were required to return, and did
business gifts, education (tuition, fees, federal M&IE rate. You can find the return, any payment not spent (or
and books), trade publications, etc. rates that applied during 2022 on the considered not spent) for business
For details, including limits, see Pub. Internet at GSA.gov/perdiem. At the expenses.
463 and Pub. 529. Per Diem Overview page, select If these payments were incorrectly
If you are deducting depreciation or “2022” for the rates in effect for the included in box 1, ask your employer
claiming a section 179 deduction, see period January 1, 2022–September for a corrected Form W-2.
Form 4562, Depreciation and 30, 2022. Select “Fiscal Year 2023”
Amortization, to figure the for the period October 1, 2022– Accounting to your employer.
depreciation and section 179 December 31, 2022. However, you This means that you gave your
deduction to enter on Form 2106, can apply the rates in effect before employer documentary evidence in
line 4. October 1, 2022, for expenses of all the form of a statement of expense,
Don't include on line 4 any travel within the United States for account book, diary, log, statement of
educator expenses you deducted on 2022 instead of the updated rates. For expenses, trip sheets, or similar
Schedule 1 (Form 1040), line 11. the period October 1, 2022– statement to verify the amount, time,
December 31, 2022, you must place, and business purpose of each
You may be able to take a consistently use either the rates for expense. You are also treated as
TIP credit for your educational the first 9 months of 2022 or the having accounted for your expenses if
expenses instead of a updated rates. either of the following applies.
deduction. See Form 8863, Education • Your employer gave you a fixed
The Department of Defense sets
Credits, for details. travel allowance that is similar in form
rates for Alaska, Hawaii, and U.S.
to the per diem allowance specified by
Don't include expenses for meals, territories and possessions. See
the federal government and you
taxes, or interest on line 4. See the travel.dod.mil/Travel-Transportation-
verified the time, place, and business
Schedule A (Itemized Deductions) for Rates/Per-Diem/Per-Diem-Rate-
purpose of the travel for that day.
your return to see whether you can Lookup/.
• Your employer reimbursed you for
deduct taxes or interest expenses. The State Department sets foreign vehicle expenses at the standard
rates. See aoprals.state.gov/web920/ mileage rate or according to a flat rate
Note. If line 4 is your only entry, don't per_diem.asp. or stated schedule, and you verified
complete Form 2106 unless you are
claiming: See Pub. 463 for details on how to the date of each trip, mileage, and
• Performing-arts-related business figure your deduction using the business purpose of the vehicle use.
expenses as a qualified performing standard meal allowance, including See Pub. 463 for more details.
artist, special rules for partial days of travel
• Expenses for performing your job and transportation workers. Allocating your reimbursement.
If your employer paid you a single
as a fee-basis state or local amount that covers meals as well as
government official, or other business expenses, you must
• Impairment-related work expenses allocate the reimbursement so that
as an individual with a disability. you know how much to enter in
column A and column B of line 7. Use

Instructions for Form 2106 (2022) -3-

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the following worksheet to figure this Meals Deduction From compensated, in whole or in part, on a
allocation. Restaurants Worksheet fee basis.
(keep for your records) If you qualify, include the part of the
Reimbursement Allocation line 10 amount attributable to the
Worksheet 1. Enter the amount of any expenses you paid or incurred for
(keep for your records) meals from restaurants that
were not reimbursed . . services performed in that job in the
total on Schedule 1 (Form 1040),
1. Enter the total amount of 2. Enter the amount of any line 12, and attach Form 2106 to your
reimbursements your meals from other sources, return. These employee business
employer gave you that including meals from expenses are deductible whether or
weren't reported to you businesses that do not not you itemize deductions.
in box 1 of Form W-2 . . .
meet the definition of a
2. Enter the total amount of restaurant, that were not Qualified performing artist. You
your expenses for the reimbursed . . . . . . . . . are a qualified performing artist if you:
periods covered by this 3. Multiply line 2 by 50% 1. Performed services in the
(0.50) . . . . . . . . . . . . .
reimbursement. . . . . . . performing arts as an employee for at
3. Enter the part of the 4. Add lines 1 and 3. Enter the least two employers during the tax
amount on line 2 that was result here and in column year,
your total expense for B, line 9 . . . . . . . . . . . 2. Received from at least two of
meals . . . . . . . . . . . . .
those employers wages of $200 or
4. Divide line 3 by line 2. Line 10. If you are one of the more per employer,
Enter the result as a individuals discussed below, special 3. Had allowable business
decimal (rounded to three rules apply to deducting your expenses attributable to the
places) . . . . . . . . . . . . .
employee business expenses. performing arts of more than 10% of
5. Multiply line 1 by line 4. gross income from the performing
Armed Forces reservist
Enter the result here and arts, and
in column B, line 7 . . . . (member of a reserve component).
You are a member of a reserve 4. Had adjusted gross income of
6. Subtract line 5 from line 1. component of the Armed Forces of $16,000 or less before deducting
Enter the result here and the United States if you are in the expenses as a performing artist.
in column A, line 7 . . . .
Army, Navy, Marine Corps, Air Force, In addition, if you are married, you
or Coast Guard Reserve; the Army must file a joint return unless you lived
Step 3—Figure Expenses National Guard of the United States; apart from your spouse for all of 2022.
To Deduct the Air National Guard of the United If you file a joint return, you must
Line 9. Generally, you can deduct States; or the Reserve Corps of the figure requirements (1), (2), and (3)
only 50% of your business meal Public Health Service. separately for both you and your
expenses, including meals incurred If you qualify, complete Form 2106 spouse. However, requirement (4)
while away from home on business. and include the part of the line 10 applies to the combined adjusted
Meals that are not separately stated amount attributable to the expenses gross income of both you and your
from entertainment are generally for travel more than 100 miles away spouse.
nondeductible. However, you can from home in connection with your If you meet all the requirements for
deduct 100% of business meals performance of services as a member a qualified performing artist, include
provided by a restaurant. This applies of the reserves on Schedule 1 (Form the part of the line 10 amount
only to meals paid or incurred after 1040), line 12, and attach Form 2106 attributable to performing-arts-related
December 31, 2020, and before to your return. The amount of expenses in the total on Schedule 1
January 1, 2023. expenses you can deduct on (Form 1040), line 12, and attach Form
See Notice 2021-63. Schedule 1 (Form 1040), line 12, is 2106 to your return. Your
limited to the regular federal per diem performing-arts-related business
rate (for lodging, meals, and incidental expenses are deductible whether or
expenses) and the standard mileage not you itemize deductions.
rate (for car expenses), plus any
parking fees, ferry fees, and tolls. Disabled employee with
These reserve-related travel impairment-related work
expenses are deductible whether or expenses. Impairment-related work
not you itemize deductions. See Pub. expenses are the allowable expenses
463 for additional details on how to of an individual with physical or
report these expenses. mental disabilities for attendant care
at his or her place of employment.
Fee-basis state or local They also include other expenses in
government official. You are a connection with the place of
qualifying fee-basis official if you are employment that enable the employee
employed by a state or political to work. See Pub. 463 for more
subdivision of a state and are details.

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If you qualify, enter the part of the to business use (or vice versa) and vehicle during the year from personal
line 10 amount attributable to you don't have mileage records for the to business use (or vice versa), enter
impairment-related work expenses on time before the change to business your commuting miles only for the
Schedule A (Form 1040), line 16 (or use, enter the total number of miles period you drove your vehicle for
Schedule A (Form 1040-NR), line 7). driven after the change to business business.
use.
Section B—Standard Mileage
Part II—Vehicle Expenses Line 13. Don't include commuting Rate
There are two methods for figuring miles on this line; commuting miles
You may be able to use the standard
vehicle expenses—the standard aren't considered business miles. See
mileage rate instead of actual
mileage rate and the actual expense the line 15 instructions for the
expenses to figure the deductible
method. You can use the standard definition of commuting.
mileage rate for 2022 only if: costs of operating a passenger
Line 14. Divide line 13 by line 12 to vehicle, including a van, an SUV, a
• You owned the vehicle and used figure your business use percentage. pickup, or a panel truck.
the standard mileage rate for the first
year you placed the vehicle in service, Change from personal to If you want to use the standard
or business use. If you entered on mileage rate for a vehicle you own,
• You leased the vehicle and are line 12 the total number of miles you must do so in the first year you
using the standard mileage rate for driven after the change to business place your vehicle in service. In later
the entire lease period (except the use, multiply the percentage you years, you can deduct actual
period, if any, before 1998). figured by the number of months you expenses instead, but you must use
drove the vehicle for business and straight line depreciation.
You can't use actual expenses for a divide the result by 12.
leased vehicle if you previously used If you lease your vehicle, you can
the standard mileage rate for that Line 15. Enter your average daily use the standard mileage rate, but
vehicle. round-trip commuting distance. If you only if you use the rate for the entire
went to more than one work location, lease period (except for the period, if
If you have the option of using
figure the average. any, before January 1, 1998).
either the standard mileage rate or
actual expense method, you should Commuting. Generally, If you use more than two vehicles,
figure your expenses both ways to commuting is travel between your complete and attach a second Form
find the method most beneficial to home and a work location. However, 2106, page 2, providing the
you. But when completing Form 2106, travel that meets any of the following information requested in lines 11
fill in only the sections that apply to conditions isn't commuting. through 22. Be sure to include the
the method you choose. • You have at least one regular work amount from line 22 of both pages in
location away from your home and the the total on Form 2106, line 1. You
If you were a rural mail carrier and
travel is to a temporary work location may not use the standard mileage rate
received an equipment maintenance
in the same trade or business, to compute the deductible expenses
allowance, see the line 1 instructions.
regardless of the distance. Generally, of five or more vehicles you own or
For more information on the a temporary work location is one lease simultaneously (such as in fleet
standard mileage rate and actual where your employment is expected operations).
expenses, see Pub. 463. to last 1 year or less. See Pub. 463 for
You can also deduct state and local
more details.
Section A—General Information personal property taxes. Enter these
• The travel is to a temporary work
taxes on Schedule A (Form 1040),
If you used two vehicles for business location outside the metropolitan area
line 5c. (Personal property taxes
during the year, use a separate where you live and normally work.
aren't deductible on Form 1040-NR.)
column in Sections A, C, and D for • Your home is your principal place of
each vehicle. If you used more than business under section 280A(c)(1)(A) If you are claiming the standard
two vehicles, complete and attach a (for purposes of deducting expenses mileage rate for mileage driven in
second Form 2106, page 2. for business use of your home) and more than one business activity, you
Line 11. Date placed in service is the travel is to another work location in must figure the deduction for each
generally the date you first start using the same trade or business, business on a separate form or
your vehicle. However, if you first start regardless of whether that location is schedule (for example, Form 2106;
using your vehicle for personal use regular or temporary and regardless Schedule C (Form 1040), Profit or
and later convert it to business use, of distance. Loss From Business; Schedule E
the vehicle is treated as placed in Line 16. If you don't know the total (Form 1040), Supplemental Income
service on the date you start using it actual miles you used your vehicle for and Loss; or Schedule F (Form 1040),
for business. commuting during the year, figure the Profit or Loss From Farming).
Line 12. Enter the total number of amount to enter on line 16 by Section C—Actual Expenses
miles you drove each vehicle during multiplying the number of days during
2022. the year that you used each vehicle Line 23. Enter your total annual
for commuting by the average daily expenses for gasoline, oil, repairs,
Change from personal to round-trip commuting distance in insurance, tires, license plates, and
business use. If you converted your miles. However, if you converted your similar items. Don't include state and
vehicle during the year from personal local personal property taxes or

Instructions for Form 2106 (2022) -5-

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interest expense you paid. Deduct Section D—Depreciation of trade or business on your Form 1040
state and local personal property Vehicles or 1040-SR.
taxes on Schedule A (Form 1040),
Depreciation is an amount you can If you are claiming a section
line 5c. Employees can't deduct car
deduct to recover the cost or other 179 deduction on other
loan interest. CAUTION!
basis of your vehicle over a certain property, or you placed more
Line 24a. If during 2022 you rented number of years. In some cases, you than $2,700,000 of section 179
or leased a vehicle instead of using can claim a special depreciation property in service during the year,
your own vehicle, enter the cost of allowance or elect to expense, under use Form 4562 to figure your section
renting. Also, include on this line any section 179, part of the cost of your 179 deduction. Enter the amount of
temporary rentals, such as when your vehicle in the year of purchase. For the section 179 deduction allocable to
car was being repaired, except for details, see Pub. 463. your vehicle from Form 4562, line 12,
amounts included on line 3. on Form 2106, line 31.
Line 30. Enter the vehicle's actual
Line 24b. If you leased a vehicle for a cost or other basis. Don't reduce your
term of 30 days or more, you may basis by any prior year's depreciation. Example.
have to reduce your deduction for However, you must reduce your basis
Section 179 basis . . . . . . . . . $25,000
vehicle lease payments by an amount by any deductible casualty loss,
called the inclusion amount. You may deduction for clean-fuel vehicle, gas Limit on depreciation and
have an inclusion amount for a guzzler tax, alternative motor vehicle section 179 deduction . . . . . $19,200*
passenger automobile if: credit, or qualified plug-in electric
Passenger Automobiles vehicle credit you claimed. Increase Smaller of:
(Including Trucks and Vans) your basis by any sales tax paid Section 179 basis, or limit on
(unless you deducted sales taxes in depreciation . . . . . . . . . . . . . $19,200
And the vehicle's the year you purchased your vehicle)
fair market value on and any substantial improvements to Percentage on line 14 . . . . . × 0.75
The lease term the first day of the your vehicle. Section 179
began in: lease exceeded:
If you traded in your vehicle, the deduction . . . . . . . . . . . . . . . $14,400
2022. . . . . . . $ 56,000 (See Rev. special rules for determining
* $11,200 if electing out of special
Proc. 2022-17) depreciation when you trade in one
depreciation allowance or not qualified
2021. . . . . . . $ 51,000 (See Rev. vehicle for another vehicle no longer
property.
Proc. 2021-31) apply.
2020. . . . . . . $ 50,000 (See Rev. If you converted the vehicle from
Proc. 2020-37) personal use to business use, your
Limit for sport utility and certain
2019. . . . . . . $ 50,000 (See Rev. basis for depreciation is the smaller of
other vehicles. For sport utility and
Proc. 2019-26) the vehicle's adjusted basis or its fair
certain other vehicles placed in
2018. . . . . . . $ 50,000 (See Rev. market value on the date of
service in 2022, the portion of the
Proc. 2018-25) conversion.
See Pub. 463 for leases beginning before 2018. vehicle's cost taken into account in
Line 31. Enter the amount of any figuring your section 179 deduction is
See Pub. 463 to figure the inclusion section 179 deduction and, if limited to $27,000. This rule applies to
amount. applicable, any special depreciation any 4-wheeled vehicle primarily
allowance claimed for this year. designed or used to carry passengers
Line 25. If during 2022 your employer over public streets, roads, or
provided a vehicle for your business Section 179 deduction. If 2022 is
highways that isn't subject to any of
use and included 100% of its annual the first year your vehicle was placed
the passenger automobile limits
lease value in box 1 of your Form in service and the percentage on
explained in the line 36 instructions
W-2, enter this amount on line 25. If line 14 is more than 50%, you can
and is rated at no more than 14,000
less than 100% of the annual lease elect to deduct as an expense a
pounds gross vehicle weight.
value was included in box 1 of your portion of the cost (subject to a yearly
However, the $27,000 limit doesn't
Form W-2, skip line 25. limit). This cost is sometimes referred
apply to any vehicle:
to as the “Section 179 basis.” To
Line 28. If you completed Section D, figure this section 179 deduction, • Designed to have a seating
capacity of more than nine persons
enter the amount from line 38. If you multiply the part of the cost of the
behind the driver's seat;
used Form 4562 to figure your vehicle that you choose to expense by
depreciation deduction, enter the total the percentage on line 14. The total of • Equipped with a cargo area of at
least 6 feet in interior length that is an
of the following amounts. your depreciation and section 179
open area or is designed for use as an
• Depreciation allocable to your deduction generally can't be more
open area but is enclosed by a cap
vehicle(s) (from Form 4562, line 28). than the percentage on line 14
and isn't readily accessible directly
• Any section 179 deduction multiplied by the applicable limit
from the passenger compartment; or
allocable to your vehicle(s) (from explained in the line 36 instructions.
Form 4562, line 29). Your section 179 deduction for the • That has an integral enclosure, fully
enclosing the driver compartment and
year can't be more than the income
load carrying device, doesn't have
from your job and any other active
seating rearward of the driver's seat,

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and has no body section protruding property in the same class placed in column (b) only if the business use
more than 30 inches ahead of the service during the year. percentage on line 14 is more than
leading edge of the windshield. To make the election, attach a 50%. The 150% declining balance
Special depreciation allowance. statement to your timely filed return method may give you a smaller
The special depreciation allowance (including extensions) indicating that depreciation deduction than in column
applies only for the first year a vehicle you are electing not to claim the (a) for the first 3 years. However, you
is placed in service. It allows up to special depreciation allowance and won't have a “depreciation
100% of your basis as a depreciation the class of property for which you are adjustment” on this vehicle for the
allowance. See chapter 4 of Pub. 463, making the election. Alternative Minimum Tax. This may
result in a smaller tax liability if you
for more details. For 2022, your total Line 32. To figure the basis for must file Form 6251, Alternative
section 179 deduction, special depreciation, multiply line 30 by the Minimum Tax—Individuals.
depreciation allowance, and regular percentage on line 14. From that
depreciation deduction can't be more result, subtract the total amount of any Column (c)—straight line
than $19,200 for passenger section 179 deduction and special method. You must use column (c) if
automobiles, multiplied by your depreciation allowance claimed this the business use percentage on
business use percentage on line 14. year (see line 31) or any section 179 line 14 is 50% or less. The method for
See the line 36 instructions for deduction and special depreciation these vehicles is the straight line
depreciation limits. You can't recover allowance claimed in any previous method over 5 years. The use of this
the amount by which your year for this vehicle. column is optional for these vehicles if
depreciation deduction exceeds the the business use percentage on
depreciation limits for the year placed Line 33. If you used the standard line 14 is more than 50%.
in service until after the end of the mileage rate in the first year the
recovery period for your vehicle. vehicle was placed in service and now Note. If your vehicle was used more
elect to use the actual expense than 50% for business in the year it
Use the following worksheet to method, you must use the straight line was placed in service and used 50%
figure the amount of the special method of depreciation for the or less in a later year, part of the
depreciation allowance. vehicle's estimated useful life. depreciation, section 179 deduction,
Otherwise, use the Depreciation and special depreciation allowance
Worksheet for the Special Method and Percentage Chart, later, previously claimed may have to be
Depreciation Allowance to find the depreciation method and added back to your income in the later
(keep for your records) percentage to enter on line 33. year. Figure the amount to be
1. Enter the total amount from To use the chart, first find the date included in income in Part IV of Form
Form 2106, line 30 . . . . you placed the vehicle in service 4797, Sales of Business Property.
(line 11). Then, select the More information. For more
2. Multiply line 1 by the depreciation method and percentage
information on depreciating your
percentage on Form 2106, from column (a), (b), or (c). For
vehicle, see Pub. 463.
line 14, and enter the example, if you placed a car in service
result . . . . . . . . . . . . .
on July 1, 2022, and you use the If you placed other business
3. Enter any section 179 method in column (a), enter “200 DB ! property in service in the
deduction . . . . . . . . . . 20%” on line 33. CAUTION same year you placed your
4. Subtract line 3 from For vehicles placed in service vehicle in service or you used your
line 2 . . . . . . . . . . . . . before 2022, use the same method vehicle mainly within an Indian
5. Multiply the applicable limit you used on last year's return unless a reservation, you may not be able to
explained in the line 36 decline in your business use requires use the chart. See Pub. 946 to figure
instructions by the a change to the straight line method. your depreciation.
percentage on Form 2106, For vehicles placed in service during
Line 34. If you sold or exchanged
line 14, and enter the 2022, select the depreciation method
your vehicle during the year, use the
result . . . . . . . . . . . . . and percentage after reading the
following instructions to figure the
6. Subtract line 3 from explanation for each column.
amount to enter on line 34.
line 5 . . . . . . . . . . . . . Column (a)—200% declining If your vehicle was placed in
7. Enter the smaller of line 4 balance method. You can use service:
or line 6. Add the result to column (a) only if the business use
1. Before 2017, enter the result of
any section 179 deduction percentage on line 14 is more than
multiplying line 32 by the percentage
(line 3 above) and enter the 50%. Of the three depreciation
on line 33;
total on Form 2106, methods, the 200% declining balance
line 31 . . . . . . . . . . . . method may give you the largest 2. After 2016, from January 1
depreciation deduction for the first 3 through September 30, enter the
years (after considering the amount figured by multiplying the
Election out. You can elect not to depreciation limit for your vehicle). result in (1) by 50%; or
claim the special depreciation See the depreciation limit tables, later. 3. After 2016, from October 1
allowance for your vehicle. If you through December 31, enter the
make this election, it applies to all Column (b)—150% declining
amount figured by multiplying the
balance method. You can use

Instructions for Form 2106 (2022) -7-

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Depreciation Method and Percentage Chart—Line 33

     Date Placed in Service                       (a)1                                   (b)1                    (c)
Oct. 1 – Dec. 31, 2022                    200 DB       5.0%                     150 DB      3.75%                SL 2.5%
Jan. 1 – Sept. 30, 2022                   200 DB       20.0                     150 DB      15.0                 SL 10.0
Oct. 1 – Dec. 31, 2021                    200 DB       38.0                     150 DB      28.88                SL 20.0
Jan. 1 – Sept. 30, 2021                   200 DB       32.0                     150 DB      25.5                 SL 20.0
Oct. 1 – Dec. 31, 2020                    200 DB       22.8                     150 DB      20.21                SL 20.0
Jan. 1 – Sept. 30, 2020                   200 DB       19.2                     150 DB      17.85                SL 20.0
Oct. 1 – Dec. 31, 2019                    200 DB       13.68                    150 DB      16.4                 SL 20.0
Jan. 1 – Sept. 30, 2019                   200 DB       11.52                    150 DB      16.66                SL 20.0
Oct. 1 – Dec. 31, 2018                    200 DB       10.94                    150 DB      16.41                SL 20.0
Jan. 1 – Sept. 30, 2018                   200 DB       11.52                    150 DB      16.66                SL 20.0
Oct. 1 – Dec. 31, 2017                    200 DB       9.58                     150 DB      14.35                SL 17.5
Jan. 1 – Sept. 30, 2017                   200 DB       5.76                     150 DB      8.33                 SL 10.0
Prior to 20172
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.

result in (1) by the percentage shown     If your vehicle isn't subject to any of        Rev. Proc. 2022-17 Table 2: 
below for the month you disposed of       the line 36 limits, skip lines 36 and 37,      Depreciation Limitations for 
the vehicle.                              and enter the amount from line 35 on           Passenger Automobiles Placed in 
                                          line 38.
Month of Disposal           Percentage                                                   Service During Calendar Year 
Jan., Feb., March . . . .         12.5%   Rev. Proc. 2022-17 Table 1:                    2022 for Which No Section 168(k) 
                                          Depreciation Limitations for                   Additional First Year Depreciation 
April, May, June  . . . . .       37.5%                                                  Deduction Applies
                                          Passenger Automobiles Acquired 
July, Aug., Sept. . . . . .       62.5%   After September 27, 2017, and 
                                                                                            Tax Year                     Amount
Oct., Nov., Dec.  . . . . .       87.5%   Placed in Service During Calendar 
                                          Year 2022, for Which the Section                  1st Tax Year                 $ 11,200
                                          168(k) Additional First Year                      2nd Tax Year                 $ 18,000
Line 36. See the tables shown here        Depreciation Deduction Applies                    3rd Tax Year                 $ 10,800
to determine the depreciation 
limitation for passenger automobiles                                                        Each Succeeding Year         $ 6,460
placed in service after 2017. See the     Tax Year                              Amount
tables in Pub. 463 to determine the       1st Tax Year                          $ 19,200 Rev. Proc. 2021-31 Table 1: 
depreciation limitation for passenger     2nd Tax Year                          $ 18,000 Depreciation Limitations for 
automobiles placed in service before 
                                          3rd Tax Year                          $ 10,800 Passenger Automobiles Acquired 
2018.
• A passenger automobile is a             Each Succeeding Year                  $ 6,460  After September 27, 2017, and 
4-wheeled vehicle manufactured                                                           Placed in Service During Calendar 
primarily for use on public roads that                                                   Year 2021, for Which the Section 
is rated at 6,000 pounds unloaded                                                        168(k) Additional First Year 
gross vehicle weight or less. Certain                                                    Depreciation Deduction Applies
vehicles, such as ambulances, 
hearses, and taxicabs, aren't 
                                                                                            Tax Year                     Amount
considered passenger automobiles 
and aren't subject to the line 36 limits.                                                   1st Tax Year                 $ 18,200
See Pub. 463 for more details.                                                              2nd Tax Year                 $ 16,400
• A truck or van is a passenger                                                             3rd Tax Year                 $ 9,800
automobile that is classified by the 
manufacturer as a truck or van, and                                                         Each Succeeding Year         $ 5,860
that is rated at 6,000 pounds gross 
vehicle weight or less.

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Rev. Proc. 2021-31 Table 2:          Rev. Proc. 2019-26 Table 1:          Rev. Proc. 2018-25 Table 1: 
Depreciation Limitations for         Depreciation Limitations for         Depreciation Limitations for 
Passenger Automobiles Placed in      Passenger Automobiles Acquired       Passenger Automobiles Acquired 
Service During Calendar Year         Before September 28, 2017, and       Before September 28, 2017, and 
2021 for Which No Section 168(k)     Placed in Service During Calendar    Placed in Service During Calendar 
Additional First Year Depreciation   Year 2019, for Which the Section     Year 2018, for Which the Section 
Deduction Applies                    168(k) Additional First Year         168(k) Additional First Year 
                                     Depreciation Deduction Applies       Depreciation Deduction Applies
Tax Year                    Amount
1st Tax Year                $ 10,200 Tax Year                    Amount   Tax Year                                       Amount
2nd Tax Year                $ 16,400 1st Tax Year                $ 14,900 1st Tax Year                                   $ 16,400
3rd Tax Year                 $ 9,800 2nd Tax Year                $ 16,100 2nd Tax Year                                   $ 16,000
Each Succeeding Year         $ 5,860 3rd Tax Year                 $ 9,700 3rd Tax Year                                   $ 9,600
                                     Each Succeeding Year         $ 5,760 Each Succeeding Year                           $ 5,760
Rev. Proc. 2020-37 Table 1: 
Depreciation Limitations for         Rev. Proc. 2019-26 Table 2:          Rev. Proc. 2018-25 Table 2: 
Passenger Automobiles Acquired       Depreciation Limitations for         Depreciation Limitations for 
After September 27, 2017, and        Passenger Automobiles Acquired       Passenger Automobiles Acquired 
Placed in Service During Calendar    After September 27, 2017, and        After September 27, 2017, and 
Year 2020, for Which the Section     Placed in Service During Calendar    Placed in Service During Calendar 
168(k) Additional First Year         Year 2019, for Which the Section     Year 2018, for Which the Section 
Depreciation Deduction Applies       168(k) Additional First Year         168(k) Additional First Year 
                                     Depreciation Deduction Applies       Depreciation Deduction Applies
Tax Year                    Amount
1st Tax Year                $ 18,100 Tax Year                    Amount   Tax Year                                       Amount
2nd Tax Year                $ 16,100 1st Tax Year                $ 18,100 1st Tax Year                                   $ 18,000
3rd Tax Year                 $ 9,700 2nd Tax Year                $ 16,100 2nd Tax Year                                   $ 16,000
Each Succeeding Year         $ 5,760 3rd Tax Year                 $ 9,700 3rd Tax Year                                   $ 9,600
                                     Each Succeeding Year         $ 5,760 Each Succeeding Year                           $ 5,760
Rev. Proc. 2020-37 Table 2: 
Depreciation Limitations for         Rev. Proc. 2019-26 Table 3:          Rev. Proc. 2018-25 Table 3: 
Passenger Automobiles Placed in      Depreciation Limitations for         Depreciation Limitations for 
Service During Calendar Year         Passenger Automobiles Placed in      Passenger Automobiles Placed in 
2020 for Which No Section 168(k)     Service During Calendar Year         Service During Calendar Year 
Additional First Year Depreciation   2019 for Which No Section 168(k)     2018 for Which No Section 168(k) 
Deduction Applies                    Additional First Year Depreciation   Additional First Year Depreciation 
                                     Deduction Applies                    Deduction Applies
Tax Year                    Amount
1st Tax Year                $ 10,100 Tax Year                    Amount   Tax Year                                       Amount
2nd Tax Year                $ 16,100 1st Tax Year                $ 10,100 1st Tax Year                                   $ 10,000
3rd Tax Year                 $ 9,700 2nd Tax Year                $ 16,100 2nd Tax Year                                   $ 16,000
Each Succeeding Year         $ 5,760 3rd Tax Year                 $ 9,700 3rd Tax Year                                   $ 9,600
                                     Each Succeeding Year         $ 5,760 Each Succeeding Year                           $ 5,760

                                                                          Paperwork Reduction Act Notice. 
                                                                          For the Paperwork Reduction Act 
                                                                          Notice, see your tax return 
                                                                          instructions.

Instructions for Form 2106 (2022)                 -9-

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