What amount of lease payments are deductible

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Tre entered into a three-year lease of a luxury automobile on january 1, 2019, for use 80% in business and 20% for personal use. the fmv of the automobile at the inception of the lease was 61,000 and troy made 12 month lease payments of 900 in 2019 and 2020

Question 1: What amount of lease payments are deductible in 2019 and 2020?

Question 2: What portion, if any, of the inclusion amount must reduce Tre's lease deduction in 2019 and 2020?

Question 3: How would your answers to part a and b change if the fmv of the auto was 15,000 and the monthly lease payment are 200?

Reference no: EM132559455

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