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2022

Instructions for Form 2106

Department of the Treasury
Internal Revenue Service

Employee Business Expenses
Section references are to the Internal
Revenue Code unless otherwise noted.

Future Developments

For the latest developments related to
Form 2106 and its instructions, such
as legislation enacted after they were
published, go to IRS.gov/Form2106.

What's New
Standard mileage rate. The 2022
per mile rate for business use of your
vehicle is 58.5 cents (0.585) from
January 1, 2022, to June 30, 2022,
and 62.5 cents (0.625) from July 1,
2022, to December 31, 2022.
Depreciation limits on vehicles.
The depreciation limits apply under
section 179 and section 280F.
Under section 179. For tax years
beginning in 2022, the aggregate cost
of any section 179 property that a
taxpayer elects to treat as an expense
cannot exceed $1,080,000. The
$1,080,000 limitation is reduced (but
not below zero) by the amount by
which the cost of section 179 property
placed in service during the 2022 tax
year exceeds $2,700,000. The cost of
any sport utility vehicle (SUV) that
may be taken into account under
section 179 cannot exceed $27,000.
(See Rev. Proc. 2021-45.)
A vehicle subject to section
280F(a) is not considered an SUV
under section 179. (See section 179.)
Under section 280F. The
depreciation limitations for passenger
automobiles acquired after
September 27, 2017, and placed in
service during calendar year 2022, for
which the section 168(k) additional
first year depreciation deduction
applies, is $19,200 for the 1st tax
year, $18,000 for the 2nd tax year,
$10,800 for the 3rd tax year, and
$6,460 for each succeeding year.
The depreciation limitations for
passenger automobiles placed in
service during calendar year 2022 for
which no section 168(k) additional first
year depreciation deduction applies is
$11,200 for the 1st tax year, $18,000
Sep 22, 2022

for the 2nd tax year, $10,800 for the
3rd tax year, and $6,460 for each
succeeding year.
For qualified property acquired and
placed in service after September 27,
2017, section 168(k) increases the
first-year depreciation allowed under
section 280F by $8,000. The section
168(k) additional first year
depreciation deduction does not apply
for 2022 if you (1) did not use the
passenger automobile during 2022
more than 50% for business
purposes; (2) elected out of the
section 168(k) additional first year
depreciation deduction for the class of
property that includes passenger
automobiles; (3) acquired the
passenger automobile used and the
acquisition did not meet the
acquisition requirements in section
168(k) and Regulations section
1.168(k)-2; or (4) acquired the
passenger automobile before
September 28, 2017, and placed it in
service after 2019. (See Rev. Proc.
2022-17.)
A deduction allowed under section
179 may be subject to the limitations
of section 280F. (See section 280F.)
Note. The section 168(k) additional
first year depreciation deduction is
sometimes called special depreciation
allowance.

General Instructions
Purpose of Form

Use Form 2106 if you were an Armed
Forces reservist, a qualified
performing artist, a fee-basis state or
local government official, or an
employee with impairment-related
work expenses. Due to the
suspension of miscellaneous itemized
deductions subject to the 2% floor
under section 67(a), employees who
do not fit into one of the listed
categories may not use Form 2106.
See the flowchart later to find out if
you must file this form.
Excess reimbursements. If you are
not a member of the Armed Forces
Cat. No. 64188V

reserves, a qualified performing artist,
a fee-basis state or local government
official, or an employee with
impairment-related work expenses,
and receive reimbursements in
excess of your expenses from your
employer’s nonaccountable plan, the
excess reimbursements should be
included in your wages (in box 1 of
Form W-2) and reported on line 1 of
your Form 1040 or 1040-SR.

Recordkeeping

You can't deduct expenses for travel
(including meals unless you used the
standard meal allowance), gifts, or
use of a car or other listed property
unless you keep records to prove the
time, place, business purpose,
business relationship (for gifts), and
amounts of these expenses.
Generally, you must also have
receipts for all lodging expenses
(regardless of the amount) and any
other expense of $75 or more.

Additional Information

For more details about employee
business expenses, see the following.
• Pub. 463, Travel, Gift, and Car
Expenses.
• Pub. 529, Miscellaneous
Deductions.
• Pub. 587, Business Use of Your
Home.
• Pub. 946, How To Depreciate
Property.

Specific Instructions
Part I—Employee
Business Expenses and
Reimbursements

Fill in all of Part I if you were
reimbursed for employee business
expenses. If you weren't reimbursed
for your expenses, complete steps 1
and 3 only.

Step 1—Enter Your Expenses
Line 1. If you were a rural mail
carrier, you can treat the amount of
qualified reimbursement you received
as the amount of your allowable

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expense. Because the qualified
reimbursement is treated as paid
under an accountable plan, your
employer shouldn't include the
amount of reimbursement in your
income.
You were a rural mail carrier if you
were an employee of the United
States Postal Service (USPS) who
performed services involving the
collection and delivery of mail on a
rural route.
Qualified reimbursements.
These are the amounts paid by the
USPS as an equipment maintenance
allowance under a collective
bargaining agreement between the
USPS and the National Rural Letter
Carriers' Association, but only if such
amounts don't exceed the amount that
would have been paid under the 1991
collective bargaining agreement
(adjusted for changes in the
Consumer Price Index since 1991 as
detailed in section 162(o)(3)).

If you were a rural mail carrier,
do not use Form 2106. Your
CAUTION employer should not include
the amount of reimbursement in your
income.

!

Line 2. The expenses of commuting
to and from work aren't deductible.
See the line 15 instructions for the
definition of commuting.
Line 3. Enter lodging and
transportation expenses connected
with overnight travel away from your
tax home (defined next). Don't include
expenses for meals. For more details,
including limits, see Pub. 463.
Tax home. Generally, your tax
home is your regular or main place of
business or post of duty regardless of
where you maintain your family home.
If you don't have a regular or main
place of business because of the
nature of your work, then your tax
home may be the place where you
regularly live. If you don't have a
regular or a main place of business or
post of duty and there is no place
where you regularly live, you are

considered an itinerant (a transient)
and your tax home is wherever you
work. As an itinerant, you are never
away from home and can't claim a
travel expense deduction. For more
details on the definition of a tax home,
see Pub. 463.
Generally, you can't deduct any
expenses for travel away from your
tax home for any period of temporary
employment of more than 1 year.
However, this 1-year rule doesn't
apply for a temporary period in which
you were a federal employee certified
by the Attorney General (or designee)
as traveling in temporary duty status
for the U.S. Government to investigate
or prosecute a federal crime (or to
provide support services for the
investigation or prosecution of a
federal crime).
Incidental expenses. The term
“incidental expenses” means fees and
tips given to porters, baggage
carriers, hotel staff, and staff on ships.
Incidental expenses don't include
expenses for laundry, cleaning and
pressing of clothing, lodging taxes,

Who Must File Form 2106
A Were you employed as an Armed Forces reservist,
a qualified performing artist, a fee-basis state or
local government official, or an individual with a
disability claiming impairment-related work
expenses? See the line 10 instructions for definitions.

No

Don’t file Form 2106 (see Notes below).

Yes
No

B Did you have job-related business expenses?

Don’t file Form 2106.

Yes
C Were you reimbursed for any of your business
expenses (count only reimbursements your employer
didn’t include in box 1 of your Form W-2)?

No

D Are you claiming job-related vehicle,
travel, transportation, meals, or
entertainment expenses?
No

Yes
E Did you use a vehicle in your job in 2022 that
you also used for business in a prior year?

Yes

File Form 2106 (see
Notes below).

Don’t file Form 2106.

No

F Are your deductible expenses more than your
reimbursements (count only reimbursements your
employer didn’t include in box 1 of your Form W-2)?
For rules covering employer reporting of reimbursed
expenses, see the instructions for line 7.

G Is either (1) or (2) true?
1. You owned this vehicle and used the actual
expense method in the first year you used the
vehicle for business.
2. You used a depreciation method other than
straight line for this vehicle in a prior year.

Yes

No

No
Don’t file Form 2106.

Notes
• Armed Forces reservists, qualified performing artists,
fee-basis state or local government officials, and
individuals with disabilities should see the instructions
for line 10 to find out where to deduct employee
expenses.
• Form 2106 may be used only by Armed Forces
reservists, qualified performing artists, fee-basis state
or local government officials, and employees with
impairment-related work expenses because of the
suspension of miscellaneous itemized deductions
subject to the 2% floor under section 67(a) by
P.L. 115-97, section 11045.

Yes
File Form 2106.

Yes
File Form 2106.

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Instructions for Form 2106 (2022)

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costs of telegrams or telephone calls,
transportation between places of
lodging or business and places where
meals are taken, or the mailing cost of
filing travel vouchers and paying
employer-sponsored charge card
billings.
You can use an optional method
(instead of actual cost) for deducting
incidental expenses only. The amount
of the deduction is $5 a day. You can
use this method only if you didn't pay
or incur any meal expenses. You can't
use this method on any day you use
the standard meal allowance (defined
later in the instructions for line 5).
Line 4. Enter other job-related
expenses not listed on any other line
of this form. Include expenses for
business gifts, education (tuition, fees,
and books), trade publications, etc.
For details, including limits, see Pub.
463 and Pub. 529.
If you are deducting depreciation or
claiming a section 179 deduction, see
Form 4562, Depreciation and
Amortization, to figure the
depreciation and section 179
deduction to enter on Form 2106,
line 4.
Don't include on line 4 any
educator expenses you deducted on
Schedule 1 (Form 1040), line 11.
You may be able to take a

TIP credit for your educational

expenses instead of a
deduction. See Form 8863, Education
Credits, for details.
Don't include expenses for meals,
taxes, or interest on line 4. See the
Schedule A (Itemized Deductions) for
your return to see whether you can
deduct taxes or interest expenses.
Note. If line 4 is your only entry, don't
complete Form 2106 unless you are
claiming:
• Performing-arts-related business
expenses as a qualified performing
artist,
• Expenses for performing your job
as a fee-basis state or local
government official, or
• Impairment-related work expenses
as an individual with a disability.
Note. No deduction is allowed for
certain entertainment expenses,
membership dues, and facilities used
in connection with these activities for

Instructions for Form 2106 (2022)

amounts paid or incurred after 2017.
See section 274.
Line 5. Enter your allowable meals
expense. Include meals while away
from your tax home overnight and
other business meals.
Standard meal allowance.
Instead of actual cost, you may be
able to claim the standard meal
allowance for your daily meals and
incidental expenses (M&IE) while
away from your tax home overnight.
Under this method, instead of keeping
records of your actual meal expenses,
you deduct a specified amount,
depending on where you travel.
However, you must still keep records
to prove the time, place, and business
purpose of your travel.
The standard meal allowance is the
federal M&IE rate. You can find the
rates that applied during 2022 on the
Internet at GSA.gov/perdiem. At the
Per Diem Overview page, select
“2022” for the rates in effect for the
period January 1, 2022–September
30, 2022. Select “Fiscal Year 2023”
for the period October 1, 2022–
December 31, 2022. However, you
can apply the rates in effect before
October 1, 2022, for expenses of all
travel within the United States for
2022 instead of the updated rates. For
the period October 1, 2022–
December 31, 2022, you must
consistently use either the rates for
the first 9 months of 2022 or the
updated rates.
The Department of Defense sets
rates for Alaska, Hawaii, and U.S.
territories and possessions. See
defensetravel.dod.mil/site/
perdiemCalc.cfm.
The State Department sets foreign
rates. See aoprals.state.gov/web920/
per_diem.asp.
See Pub. 463 for details on how to
figure your deduction using the
standard meal allowance, including
special rules for partial days of travel
and transportation workers.

Step 2—Enter Reimbursements
Received From Your Employer
for Expenses Listed in Step 1
Line 7. Enter reimbursements
received from your employer (or third
party) for expenses shown in Step 1
that weren't reported to you in box 1 of
your Form W-2. This includes
reimbursements reported under code
-3-

“L” in box 12 of Form W-2. Amounts
reported under code “L” are
reimbursements you received for
business expenses that weren't
included as wages on Form W-2
because the expenses met specific
IRS substantiation requirements.
Generally, when your employer
pays for your expenses, the payments
shouldn't be included in box 1 of your
Form W-2 if, within a reasonable
period of time, you:
• Accounted to your employer for the
expenses; and
• Were required to return, and did
return, any payment not spent (or
considered not spent) for business
expenses.
If these payments were incorrectly
included in box 1, ask your employer
for a corrected Form W-2.
Accounting to your employer.
This means that you gave your
employer documentary evidence in
the form of a statement of expense,
account book, diary, log, statement of
expenses, trip sheets, or similar
statement to verify the amount, time,
place, and business purpose of each
expense. You are also treated as
having accounted for your expenses if
either of the following applies.
• Your employer gave you a fixed
travel allowance that is similar in form
to the per diem allowance specified by
the federal government and you
verified the time, place, and business
purpose of the travel for that day.
• Your employer reimbursed you for
vehicle expenses at the standard
mileage rate or according to a flat rate
or stated schedule, and you verified
the date of each trip, mileage, and
business purpose of the vehicle use.
See Pub. 463 for more details.
Allocating your reimbursement.
If your employer paid you a single
amount that covers meals as well as
other business expenses, you must
allocate the reimbursement so that
you know how much to enter in
column A and column B of line 7. Use
the following worksheet to figure this
allocation.

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Reimbursement Allocation
Worksheet
(keep for your records)
1. Enter the total amount of
reimbursements your
employer gave you that
weren't reported to you
in box 1 of Form W-2 . . .

1. Enter the amount of any
meals from restaurants that
were not reimbursed . .
2. Enter the amount of any
meals from other sources,
including meals from
businesses that do not
meet the definition of a
restaurant, that were not
reimbursed . . . . . . . . .

2. Enter the total amount of
your expenses for the
periods covered by this
reimbursement . . . . . . .
3. Enter the part of the
amount on line 2 that was
your total expense for
meals . . . . . . . . . . . . .
4. Divide line 3 by line 2.
Enter the result as a
decimal (rounded to three
places) . . . . . . . . . . . .

Meals Deduction From
Restaurants Worksheet
(keep for your records)

3. Multiply line 2 by 50%
(0.50) . . . . . . . . . . .

. .

4. Add lines 1 and 3. Enter the
result here and in column
B, line 9 . . . . . . . . . . .
.

5. Multiply line 1 by line 4.
Enter the result here and
in column B, line 7 . . . .
6. Subtract line 5 from line 1.
Enter the result here and
in column A, line 7 . . . .

Step 3—Figure Expenses
To Deduct
Line 9. Generally, you can deduct
only 50% of your business meal
expenses, including meals incurred
while away from home on business.
Meals that are not separately stated
from entertainment are generally
nondeductible. However, you can
deduct 100% of business meals
provided by a restaurant. This applies
only to meals paid or incurred after
December 31, 2020, and before
January 1, 2023.
See Notice 2021-63.

Line 10. If you are one of the
individuals discussed below, special
rules apply to deducting your
employee business expenses.
Armed Forces reservist
(member of a reserve component).
You are a member of a reserve
component of the Armed Forces of
the United States if you are in the
Army, Navy, Marine Corps, Air Force,
or Coast Guard Reserve; the Army
National Guard of the United States;
the Air National Guard of the United
States; or the Reserve Corps of the
Public Health Service.
If you qualify, complete Form 2106
and include the part of the line 10
amount attributable to the expenses
for travel more than 100 miles away
from home in connection with your
performance of services as a member
of the reserves on Schedule 1 (Form
1040), line 12, and attach Form 2106
to your return. The amount of
expenses you can deduct on
Schedule 1 (Form 1040), line 12, is
limited to the regular federal per diem
rate (for lodging, meals, and incidental
expenses) and the standard mileage
rate (for car expenses), plus any
parking fees, ferry fees, and tolls.
These reserve-related travel
expenses are deductible whether or
not you itemize deductions. See Pub.
463 for additional details on how to
report these expenses.
Fee-basis state or local
government official. You are a
qualifying fee-basis official if you are
employed by a state or political
subdivision of a state and are
-4-

compensated, in whole or in part, on a
fee basis.
If you qualify, include the part of the
line 10 amount attributable to the
expenses you paid or incurred for
services performed in that job in the
total on Schedule 1 (Form 1040),
line 12, and attach Form 2106 to your
return. These employee business
expenses are deductible whether or
not you itemize deductions.
Qualified performing artist. You
are a qualified performing artist if you:
1. Performed services in the
performing arts as an employee for at
least two employers during the tax
year,
2. Received from at least two of
those employers wages of $200 or
more per employer,
3. Had allowable business
expenses attributable to the
performing arts of more than 10% of
gross income from the performing
arts, and
4. Had adjusted gross income of
$16,000 or less before deducting
expenses as a performing artist.
In addition, if you are married, you
must file a joint return unless you lived
apart from your spouse for all of 2022.
If you file a joint return, you must
figure requirements (1), (2), and (3)
separately for both you and your
spouse. However, requirement (4)
applies to the combined adjusted
gross income of both you and your
spouse.
If you meet all the requirements for
a qualified performing artist, include
the part of the line 10 amount
attributable to performing-arts-related
expenses in the total on Schedule 1
(Form 1040), line 12, and attach Form
2106 to your return. Your
performing-arts-related business
expenses are deductible whether or
not you itemize deductions.
Disabled employee with
impairment-related work
expenses. Impairment-related work
expenses are the allowable expenses
of an individual with physical or
mental disabilities for attendant care
at his or her place of employment.
They also include other expenses in
connection with the place of
employment that enable the employee
to work. See Pub. 463 for more
details.
Instructions for Form 2106 (2022)

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If you qualify, enter the part of the
line 10 amount attributable to
impairment-related work expenses on
Schedule A (Form 1040), line 16 (or
Schedule A (Form 1040-NR), line 7).

Part II—Vehicle Expenses

There are two methods for figuring
vehicle expenses—the standard
mileage rate and the actual expense
method. You can use the standard
mileage rate for 2022 only if:

• You owned the vehicle and used

the standard mileage rate for the first
year you placed the vehicle in service,
or
• You leased the vehicle and are
using the standard mileage rate for
the entire lease period (except the
period, if any, before 1998).
You can't use actual expenses for a
leased vehicle if you previously used
the standard mileage rate for that
vehicle.
If you have the option of using
either the standard mileage rate or
actual expense method, you should
figure your expenses both ways to
find the method most beneficial to
you. But when completing Form 2106,
fill in only the sections that apply to
the method you choose.
If you were a rural mail carrier and
received an equipment maintenance
allowance, see the line 1 instructions.
For more information on the
standard mileage rate and actual
expenses, see Pub. 463.

Section A—General Information

If you used two vehicles for business
during the year, use a separate
column in Sections A, C, and D for
each vehicle. If you used more than
two vehicles, complete and attach a
second Form 2106, page 2.

Line 11. Date placed in service is
generally the date you first start using
your vehicle. However, if you first start
using your vehicle for personal use
and later convert it to business use,
the vehicle is treated as placed in
service on the date you start using it
for business.
Line 12. Enter the total number of
miles you drove each vehicle during
2022.
Change from personal to
business use. If you converted your
vehicle during the year from personal
Instructions for Form 2106 (2022)

to business use (or vice versa) and
you don't have mileage records for the
time before the change to business
use, enter the total number of miles
driven after the change to business
use.
Line 13. Don't include commuting
miles on this line; commuting miles
aren't considered business miles. See
the line 15 instructions for the
definition of commuting.
Line 14. Divide line 13 by line 12 to
figure your business use percentage.
Change from personal to
business use. If you entered on
line 12 the total number of miles
driven after the change to business
use, multiply the percentage you
figured by the number of months you
drove the vehicle for business and
divide the result by 12.
Line 15. Enter your average daily
round-trip commuting distance. If you
went to more than one work location,
figure the average.
Commuting. Generally,
commuting is travel between your
home and a work location. However,
travel that meets any of the following
conditions isn't commuting.
• You have at least one regular work
location away from your home and the
travel is to a temporary work location
in the same trade or business,
regardless of the distance. Generally,
a temporary work location is one
where your employment is expected
to last 1 year or less. See Pub. 463 for
more details.
• The travel is to a temporary work
location outside the metropolitan area
where you live and normally work.
• Your home is your principal place of
business under section 280A(c)(1)(A)
(for purposes of deducting expenses
for business use of your home) and
the travel is to another work location in
the same trade or business,
regardless of whether that location is
regular or temporary and regardless
of distance.
Line 16. If you don't know the total
actual miles you used your vehicle for
commuting during the year, figure the
amount to enter on line 16 by
multiplying the number of days during
the year that you used each vehicle
for commuting by the average daily
round-trip commuting distance in
miles. However, if you converted your
-5-

vehicle during the year from personal
to business use (or vice versa), enter
your commuting miles only for the
period you drove your vehicle for
business.

Section B—Standard Mileage
Rate

You may be able to use the standard
mileage rate instead of actual
expenses to figure the deductible
costs of operating a passenger
vehicle, including a van, an SUV, a
pickup, or a panel truck.
If you want to use the standard
mileage rate for a vehicle you own,
you must do so in the first year you
place your vehicle in service. In later
years, you can deduct actual
expenses instead, but you must use
straight line depreciation.
If you lease your vehicle, you can
use the standard mileage rate, but
only if you use the rate for the entire
lease period (except for the period, if
any, before January 1, 1998).
If you use more than two vehicles,
complete and attach a second Form
2106, page 2, providing the
information requested in lines 11
through 22. Be sure to include the
amount from line 22 of both pages in
the total on Form 2106, line 1.
You can also deduct state and local
personal property taxes. Enter these
taxes on Schedule A (Form 1040),
line 5c. (Personal property taxes
aren't deductible on Form 1040-NR.)
If you are claiming the standard
mileage rate for mileage driven in
more than one business activity, you
must figure the deduction for each
business on a separate form or
schedule (for example, Form 2106;
Schedule C (Form 1040), Profit or
Loss From Business; Schedule E
(Form 1040), Supplemental Income
and Loss; or Schedule F (Form 1040),
Profit or Loss From Farming).

Section C—Actual Expenses
Line 23. Enter your total annual
expenses for gasoline, oil, repairs,
insurance, tires, license plates, and
similar items. Don't include state and
local personal property taxes or
interest expense you paid. Deduct
state and local personal property
taxes on Schedule A (Form 1040),
line 5c. Employees can't deduct car
loan interest.

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Line 24a. If during 2022 you rented
or leased a vehicle instead of using
your own vehicle, enter the cost of
renting. Also, include on this line any
temporary rentals, such as when your
car was being repaired, except for
amounts included on line 3.
Line 24b. If you leased a vehicle for a
term of 30 days or more, you may
have to reduce your deduction for
vehicle lease payments by an amount
called the inclusion amount. For tax
years beginning in 2022, all vehicles
are subject to a single inclusion
amount threshold for passenger
automobiles leased and put into
service in 2022. You may have an
inclusion amount for a passenger
automobile if:
Passenger Automobiles
(Including Trucks and Vans)

The lease term
began in:

And the vehicle's
fair market value on
the first day of the
lease exceeded:

2022 . . . . . . .

$ 56,000 ( See Rev.
Proc. 2022-17)

2021 . . . . . . .

$ 51,000 (See Rev.
Proc. 2021-31)

2020 . . . . . . .

$ 50,000 (See Rev.
Proc. 2020-37)

2019 . . . . . . .

$ 50,000 (See Rev.
Proc. 2019-26)

2018 . . . . . . .

$ 50,000 (See Rev.
Proc. 2018-25)

See Pub. 463 for leases beginning before 2018.

See Pub. 463 to figure the inclusion
amount.
Line 25. If during 2022 your employer
provided a vehicle for your business
use and included 100% of its annual
lease value in box 1 of your Form
W-2, enter this amount on line 25. If
less than 100% of the annual lease
value was included in box 1 of your
Form W-2, skip line 25.
Line 28. If you completed Section D,
enter the amount from line 38. If you
used Form 4562 to figure your
depreciation deduction, enter the total
of the following amounts.
• Depreciation allocable to your
vehicle(s) (from Form 4562, line 28).
• Any section 179 deduction
allocable to your vehicle(s) (from
Form 4562, line 29).

Section D—Depreciation of
Vehicles

Depreciation is an amount you can
deduct to recover the cost or other
basis of your vehicle over a certain
number of years. In some cases, you
can claim a special depreciation
allowance or elect to expense, under
section 179, part of the cost of your
vehicle in the year of purchase. For
details, see Pub. 463.
Line 30. Enter the vehicle's actual
cost or other basis. Don't reduce your
basis by any prior year's depreciation.
However, you must reduce your basis
by any deductible casualty loss,
deduction for clean-fuel vehicle, gas
guzzler tax, alternative motor vehicle
credit, or qualified plug-in electric
vehicle credit you claimed. Increase
your basis by any sales tax paid
(unless you deducted sales taxes in
the year you purchased your vehicle)
and any substantial improvements to
your vehicle.
If you traded in your vehicle, the
special rules for determining
depreciation when you trade in one
vehicle for another vehicle no longer
apply.
If you converted the vehicle from
personal use to business use, your
basis for depreciation is the smaller of
the vehicle's adjusted basis or its fair
market value on the date of
conversion.
Line 31. Enter the amount of any
section 179 deduction and, if
applicable, any special depreciation
allowance claimed for this year.
Section 179 deduction. If 2022 is
the first year your vehicle was placed
in service and the percentage on
line 14 is more than 50%, you can
elect to deduct as an expense a
portion of the cost (subject to a yearly
limit). This cost is sometimes referred
to as the “Section 179 basis.” To
figure this section 179 deduction,
multiply the part of the cost of the
vehicle that you choose to expense by
the percentage on line 14. The total of
your depreciation and section 179
deduction generally can't be more
than the percentage on line 14
multiplied by the applicable limit
explained in the line 36 instructions.
Your section 179 deduction for the
year can't be more than the income
from your job and any other active
-6-

trade or business on your Form 1040
or 1040-SR.
If you are claiming a section
179 deduction on other
CAUTION property, or you placed more
than $2,700,000 of section 179
property in service during the year,
use Form 4562 to figure your section
179 deduction. Enter the amount of
the section 179 deduction allocable to
your vehicle from Form 4562, line 12,
on Form 2106, line 31.

!

Example.
Section 179 basis . . . . . . . . .

$25,000

Limit on depreciation and
section 179 deduction . . . . . $19, 200*
Smaller of:
Section 179 basis, or limit on
depreciation . . . . . . . . . . . . .

$19,200

Percentage on line 14 . . . . .

× 0.75

Section 179
deduction . . . . . . . . . . . . . . .

$14,400

* $11,200 if electing out of special
depreciation allowance or not qualified
property.

Limit for sport utility and certain
other vehicles. For sport utility and
certain other vehicles placed in
service in 2022, the portion of the
vehicle's cost taken into account in
figuring your section 179 deduction is
limited to $27,000. This rule applies to
any 4-wheeled vehicle primarily
designed or used to carry passengers
over public streets, roads, or
highways that isn't subject to any of
the passenger automobile limits
explained in the line 36 instructions
and is rated at no more than 14,000
pounds gross vehicle weight.
However, the $27,000 limit doesn't
apply to any vehicle:
• Designed to have a seating
capacity of more than nine persons
behind the driver's seat;
• Equipped with a cargo area of at
least 6 feet in interior length that is an
open area or is designed for use as an
open area but is enclosed by a cap
and isn't readily accessible directly
from the passenger compartment; or
• That has an integral enclosure, fully
enclosing the driver compartment and
load carrying device, doesn't have
seating rearward of the driver's seat,
Instructions for Form 2106 (2022)

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and has no body section protruding
more than 30 inches ahead of the
leading edge of the windshield.
Special depreciation allowance.
The special depreciation allowance
applies only for the first year a vehicle
is placed in service. It allows up to
100% of your basis as a depreciation
allowance. See chapter 4 of Pub. 463,
for more details. For 2022, your total
section 179 deduction, special
depreciation allowance, and regular
depreciation deduction can't be more
than $19,200 for passenger
automobiles, multiplied by your
business use percentage on line 14.
See the line 36 instructions for
depreciation limits. You can't recover
the amount by which your
depreciation deduction exceeds the
depreciation limits for the year placed
in service until after the end of the
recovery period for your vehicle.
Use the following worksheet to
figure the amount of the special
depreciation allowance.
Worksheet for the Special
Depreciation Allowance
(keep for your records)
1. Enter the total amount from
Form 2106, line 30 . . . .
2. Multiply line 1 by the
percentage on Form 2106,
line 14, and enter the
result . . . . . . . . . . . . .
3. Enter any section 179
deduction . . . . . . . .
4. Subtract line 3 from
line 2 . . . . . . . . .

. .

. . . .

5. Multiply the applicable limit
explained in the line 36
instructions by the
percentage on Form 2106,
line 14, and enter the
result . . . . . . . . . . . . .
6. Subtract line 3 from
line 5 . . . . . . . . .

. . . .

7. Enter the smaller of line 4
or line 6. Add the result to
any section 179 deduction
(line 3 above) and enter the
total on Form 2106,
line 31 . . . . . . . . . . . .

Election out. You can elect not to
claim the special depreciation
allowance for your vehicle. If you
make this election, it applies to all
Instructions for Form 2106 (2022)

property in the same class placed in
service during the year.
To make the election, attach a
statement to your timely filed return
(including extensions) indicating that
you are electing not to claim the
special depreciation allowance and
the class of property for which you are
making the election.
Line 32. To figure the basis for
depreciation, multiply line 30 by the
percentage on line 14. From that
result, subtract the total amount of any
section 179 deduction and special
depreciation allowance claimed this
year (see line 31) or any section 179
deduction and special depreciation
allowance claimed in any previous
year for this vehicle.
Line 33. If you used the standard
mileage rate in the first year the
vehicle was placed in service and now
elect to use the actual expense
method, you must use the straight line
method of depreciation for the
vehicle's estimated useful life.
Otherwise, use the Depreciation
Method and Percentage Chart, later,
to find the depreciation method and
percentage to enter on line 33.
To use the chart, first find the date
you placed the vehicle in service
(line 11). Then, select the
depreciation method and percentage
from column (a), (b), or (c). For
example, if you placed a car in service
on July 1, 2022, and you use the
method in column (a), enter “200 DB
20%” on line 33.
For vehicles placed in service
before 2022, use the same method
you used on last year's return unless a
decline in your business use requires
a change to the straight line method.
For vehicles placed in service during
2022, select the depreciation method
and percentage after reading the
explanation for each column.
Column (a)—200% declining
balance method. You can use
column (a) only if the business use
percentage on line 14 is more than
50%. Of the three depreciation
methods, the 200% declining balance
method may give you the largest
depreciation deduction for the first 3
years (after considering the
depreciation limit for your vehicle).
See the depreciation limit tables, later.
Column (b)—150% declining
balance method. You can use
-7-

column (b) only if the business use
percentage on line 14 is more than
50%. The 150% declining balance
method may give you a smaller
depreciation deduction than in column
(a) for the first 3 years. However, you
won't have a “depreciation
adjustment” on this vehicle for the
Alternative Minimum Tax. This may
result in a smaller tax liability if you
must file Form 6251, Alternative
Minimum Tax—Individuals.
Column (c)—straight line
method. You must use column (c) if
the business use percentage on
line 14 is 50% or less. The method for
these vehicles is the straight line
method over 5 years. The use of this
column is optional for these vehicles if
the business use percentage on
line 14 is more than 50%.
Note. If your vehicle was used more
than 50% for business in the year it
was placed in service and used 50%
or less in a later year, part of the
depreciation, section 179 deduction,
and special depreciation allowance
previously claimed may have to be
added back to your income in the later
year. Figure the amount to be
included in income in Part IV of Form
4797, Sales of Business Property.
More information. For more
information on depreciating your
vehicle, see Pub. 463.
If you placed other business
property in service in the
CAUTION same year you placed your
vehicle in service or you used your
vehicle mainly within an Indian
reservation, you may not be able to
use the chart. See Pub. 946 to figure
your depreciation.

!

Line 34. If you sold or exchanged
your vehicle during the year, use the
following instructions to figure the
amount to enter on line 34.
If your vehicle was placed in
service:
1. Before 2017, enter the result of
multiplying line 32 by the percentage
on line 33;
2. After 2016, from January 1
through September 30, enter the
amount figured by multiplying the
result in (1) by 50%; or
3. After 2016, from October 1
through December 31, enter the
amount figured by multiplying the

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Depreciation Method and Percentage Chart—Line 33
Date Placed in Service

(a)1

(b)1

Oct. 1 – Dec. 31, 2022

200 DB

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 2017

5.0%

150 DB

(c)
3.75%

SL

2.5%

2

You can use this column only if the business use of your car is more than 50%.
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.
1

2

result in (1) by the percentage shown
below for the month you disposed of
the vehicle.
Month of Disposal

Percentage

Jan., Feb., March . . . .

12.5%

April, May, June . . . . .

37.5%

July, Aug., Sept. . . . . .

62.5%

Oct., Nov., Dec. . . . . .

87.5%

you placed your vehicle in service.
Then, enter on line 36 the
corresponding amount from the “Limit”
column. Before using the charts,
please read the following definitions.
• A passenger automobile is a
4-wheeled vehicle manufactured
primarily for use on public roads that
is rated at 6,000 pounds unloaded
gross vehicle weight or less. Certain
vehicles, such as ambulances,
hearses, and taxicabs, aren't

considered passenger automobiles
and aren't subject to the line 36 limits.
See Pub. 463 for more details.
• A truck or van is a passenger
automobile that is classified by the
manufacturer as a truck or van, and
that is rated at 6,000 pounds gross
vehicle weight or less.
If your vehicle isn't subject to any of
the line 36 limits, skip lines 36 and 37,
and enter the amount from line 35 on
line 38.

Line 36. Using the applicable chart
for your type of vehicle, find the date

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Instructions for Form 2106 (2022)

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Limits for Passenger Automobiles
(Including Trucks and Vans)
acquired before September 28,
2017, and placed in service during
2020 or 2021
Date Vehicle Was
Placed in Service
Jan. 1 – Dec. 31, 2021
Jan. 1 – Dec. 31, 2020

Limit
.....
.....

$16,400*
9,700

* If you elect not to claim the special depreciation
allowance for the vehicle or the vehicle is not
qualified property, the limit is $11,200.

Limits for Passenger Automobiles
(Including Trucks and Vans)
acquired after September 27,
2017, and placed in service during
2018 or later
Date Vehicle Was
Placed in Service
Jan. 1, 2022 – Dec. 31,
2022 . . . . . . . . . . . . . .
Jan. 1, 2021 – Dec. 31,
2021 . . . . . . . . . . . . . .
Jan. 1, 2020 – Dec. 31,
2020 . . . . . . . . . . . . .
Jan. 1 – Dec. 31, 2019

Limit
.....

$19,200*

.....

16,400

.....
.....

9,700
5,760

* If you elect not to claim the special depreciation
allowance for the vehicle or the vehicle is not
qualified property, the limit is $11,200.

Instructions for Form 2106 (2022)

Limits for Passenger Automobiles
(Except Trucks and Vans) Placed
in Service Prior to 2018
Date Vehicle Was
Placed in Service

Limit

Jan. 1, 2012 – Dec. 31,
2017 . . . . . . . . . . . . . .
Jan. 1, 2006 – Dec. 31,
2011 . . . . . . . . . . . . . .
Jan. 1, 2004 – Dec. 31,
2005 . . . . . . . . . . . . . .
Jan. 1, 1995 – Dec. 31,
2003 . . . . . . . . . . . . . .

.....

$1,875

.....

1,775

.....

1,675

.....

1,775

Limits for Trucks and Vans Placed
in Service Prior to 2018
Date Vehicle Was
Placed in Service

Limit

Jan. 1, 2016 – Dec. 31,
2017 . . . . . . . . . . . . . .
Jan. 1, 2013 – Dec. 31,
2015 . . . . . . . . . . . . . .
Jan. 1, 2010 – Dec. 31,
2012 . . . . . . . . . . . . . .
Jan. 1 – Dec. 31, 2009
Jan. 1, 2004 – Dec. 31,
2008 . . . . . . . . . . . . . .
Jan. 1 – Dec. 31, 2003
Jan. 1, 1995 – Dec. 31,
2002 . . . . . . . . . . . . . .

-9-

.....

$2,075

.....

1,975

.....
.....

1,875
1,775

.....
.....

1,875
1,975

.....

1,775

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