Leasing a business vehicle is much cheaper in 2011. The amount taxed is about 50% less than in 2010. If the vehicle has a worth of more than $18,500 when first leased for business during 2011, the lessee must pay income tax each year on an amount spelled out in IRS tables.The extra income partially offsets the lessee’s tax deduction for the lease payments and is intended to approximate the squeeze on buyers from the cap on depreciation.
(Rev. Proc. 2011-21)