Instructions For Form 2106 - Employee Business Expenses

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Form 4797, Sales of Business

An electric automobile is a vehicle

Limits for Electric Automobiles

Property.

produced by an original equipment

Placed in Service After

manufacturer and designed to run

August 5, 1997

If you placed other business

primarily on electricity. Gasoline-

property in service during the

electric hybrid vehicles that are not

Date Vehicle Was

year you placed your vehicle

CAUTION

designed to run primarily on electricity

Placed in Service

Limit

in service you may not be able to use

(such as the Ford Escape Hybrid, the

the chart. See Pub. 946 to figure your

Honda Insight, and Toyota Prius) are

Jan. 1 – Dec. 31, 2006 . . . . . .

$ 8,980

depreciation.

not electric passenger vehicles.

Jan. 1 – Dec. 31, 2005 . . . . . .

14,200

Line 34. If you sold or exchanged

If your vehicle is not subject to any

your vehicle during the year, use the

Jan. 1 – Dec. 31, 2004 . . . . . .

8,550

of the line 36 limits, skip lines 36 and

following instructions to figure the

37, and enter the amount from line 35

Jan. 1 – Dec. 31, 2003 . . . . . .

5,225

amount to enter on line 34.

on line 38.

If your vehicle was placed in

Jan. 1, 1999 – Dec. 31, 2002

5,325

Exception for clean-fuel

service:

modifications. For vehicles placed

Aug. 6, 1997 – Dec. 31, 1998

5,425

1. Before 2001, enter the result of

in service after August 5, 1997, and

multiplying line 32 by the percentage

before January 1, 2006, the

on line 33;

Paperwork Reduction Act Notice.

passenger automobile limits

2. After 2000, from January 1

We ask for the information on this

(including those for trucks and vans)

through September 30, enter the

form to carry out the Internal

do not apply to the cost of any

amount figured by multiplying the

Revenue laws of the United States.

qualified clean-fuel vehicle property

result in (1) by 50%; or

You are required to give us the

(such as retrofit parts and

3. After 2000, from October 1

information. We need it to ensure that

components) installed on a vehicle for

through December 31 (or during 2001

you are complying with these laws

the purpose of permitting that vehicle

and you did not make the election

and to allow us to figure and collect

to run on a clean-burning fuel. See

under Notice 2001-70), enter the

the right amount of tax.

section 179A for definitions.

amount figured by multiplying the

You are not required to provide the

Limits for Passenger Automobiles

result in (1) by the percentage shown

information requested on a form that

(Except Electric Automobiles

below for the month you disposed of

is subject to the Paperwork Reduction

the vehicle.

Placed in Service After August 5,

Act unless the form displays a valid

1997, Trucks, and Vans)

OMB control number. Books or

Month

Percentage

records relating to a form or its

Date Vehicle Was

instructions must be retained as long

Jan., Feb., March . . . . . . . .

12.5%

Placed in Service

Limit

as their contents may become

material in the administration of any

April, May, June . . . . . . . . .

37.5%

Jan. 1 – Dec. 31, 2006 . . . . . .

$2,960

Internal Revenue law. Generally, tax

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

62.5%

returns and return information are

Jan. 1 – Dec. 31, 2005 . . . . . .

4,700

confidential, as required by section

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

87.5%

Jan. 1 – Dec. 31, 2004 . . . . . .

2,850

6103.

Jan. 1, 1995 – Dec. 31, 2003

1,775

The average time and expenses

Line 36. Using the applicable chart

required to complete and file this form

for your type of vehicle, find the date

Jan. 1, 1993 – Dec. 31, 1994

1,675

will vary depending on individual

you placed your vehicle in service.

circumstances. For the estimated

Jan. 1, 1991 – Dec. 31, 1992

1,575

Then, enter on line 36 the

averages, see the instructions for

corresponding amount from the

Jan. 1, 1987 – Dec. 31, 1990

1,475

your income tax return.

“Limit” column. Before using the

charts, please read the following

If you have suggestions for making

Limits for Trucks and Vans

definitions.

this form simpler, we would be happy

•

A passenger automobile is a

to hear from you. See the instructions

Date Vehicle Was

4-wheeled vehicle manufactured

for your income tax return.

Placed in Service

Limit

primarily for use on public roads that

is rated at 6,000 pounds unloaded

Jan. 1 – Dec. 31, 2006 . . . . . .

$3,260

gross vehicle weight or less (for a

Jan. 1 – Dec. 31, 2005 . . . . . .

5,200

truck or van, gross vehicle weight is

substituted for unloaded gross vehicle

Jan. 1 – Dec. 31, 2004 . . . . . .

3,150

weight). Certain vehicles, such as

Jan. 1 – Dec. 31, 2003 . . . . .

1,975

ambulances, hearses, and taxicabs,

are not considered passenger

Jan. 1, 1995 – Dec. 31, 2002

1,775

automobiles and are not subject to

Jan. 1, 1993 – Dec. 31, 1994

1,675

the line 36 limits. See Pub. 463 for

more details.

Jan. 1, 1991 – Dec. 31, 1992

1,575

•

A truck or van is a passenger

Jan. 1, 1987 – Dec. 31, 1990

1,475

automobile built on a truck chassis,

including a minivan or a sport utility

vehicle built on a truck chassis.

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Instructions For Form 2106 - Employee Business Expenses - 2006 Page 8

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