Jackson uses his automobile 90% for business and during 2015 drove a total of 14
ID: 2454261 • Letter: J
Question
Jackson uses his automobile 90% for business and during 2015 drove a total of 14,000 miles. Information regarding his car expenses is listed below.
Business parking
$ 140
Auto insurance
1,300
Auto club dues (includes towing service)
180
Toll road charges (business-related)
200
Oil changes and engine tune-ups
210
Repairs
160
Depreciation allowable
2,850
Fines for traffic violations (incurred during business use)
320
Gasoline purchases
2,800
What is Jackson's deduction in 2015 for the use of his car if he uses?
The actual cost method?
The automatic mileage method?
Business parking
$ 140
Auto insurance
1,300
Auto club dues (includes towing service)
180
Toll road charges (business-related)
200
Oil changes and engine tune-ups
210
Repairs
160
Depreciation allowable
2,850
Fines for traffic violations (incurred during business use)
320
Gasoline purchases
2,800
Explanation / Answer
Actual Expense Method
Automatic Mileage Method:
No. of miles travelled for busniess use = 14000*0.90 = 12600 Miles
Deduction per mile = 57.5 cents
Total Deduction = 12600*57.5 = 724500 cents = $7245
$ Business Parking 140 Auto Insurance 1170 Auto club dues 162 Toll-road charges 200 Oil change and engine tune-ups 189 Repairs 144 Depreciation allowable 2850 Gasoline Purchases 2520 Total Actual expenses allowable as deduction 7375Related Questions
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