Chris opens a chiropractic office in Houston on January 1, 2016. In 2016, Chris

Question

Chris opens a chiropractic office in Houston on January 1, 2016. In 2016, Chris drives a total of 4,200 miles from his office to clients’ homes to do chiropractic adjustments. In addition, he drives a total of 3,000 miles for commuting between his home and his office in 2016. He elects to use the standard mileage method. On January 1, 2016, Chris purchases an annual subscription to a chiropractic journal for $200 and a 1-year medical reference service for $500. Calculate Chris's deduction for the above items for the 2016 tax year

Explanation / Answer

You cannot deduct the cost of transportation between your home and your office; this is a personal commuting expense.

The standard mileage rate for 2016 was 54 cents per mile.

Commuting expense = 4200 * 0.54

Commuting expense = $ 2,268

Subscription expense = $ 200

Medical reference service fee = $ 500

Deductions for the 2016 tax year = $ 2268 + $ 200 + $ 500

Deductions for the 2016 tax year = $ 2968

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