William is employed by an accounting firm and uses his automobile in connection

Question

William is employed by an accounting firm and uses his automobile in connection with his work. During the month of October 2015, he works at the office for 3 days and participates in the audit of a key client for 19 days. In the audit situation, William goes directly from his home to the client's office. On all other days, he drives to his employer's office. On four Saturdays in October, he drives from his home to a local university where he attends classes in a part-time MBA program. Relevant mileage is as follows: Travel Miles Home to office 12 Office to audit client 13 Home to audit client 14 Home to university 10 Using the automatic mileage method, what is William's deduction for the month? Do not round your computations. Enter your final answer to two decimal places.

Explanation / Answer

The trip from home to audit client and university qualify. Home to office journey is non deductible.

Thus, Total miles travelled = (14 miles x 2 sides x 19 days) + (10 miles x 2 sides x 4 days)

...........................................=532 miles + 80 miles

...........................................= 612 miles

Automatic mileage rate for 2015 = $0.575 per mileage

Hence, deductible amount = 612 miles x 0.575 per mileage

..............................................= $351.90

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