corporation? c. Are there any detriments to putting Laura on the payroll? TAX FO

Question

corporation? c. Are there any detriments to putting Laura on the payroll? TAX FORM/RETURN PREPARATION PROBLEMS In 2016, Micah Johnson (SSN 000-22-1111) is employed as a manager and incurs lowing unreimbursed employee business expenses: Airplane and taxi fares Lodging away from home Meals while away from home Automobile expenses (related to 100% of $ 4,000 5,000 1,000 the use of his personal automobile): Gasoline and oil Repairs Insurance Depreciation Parking and tolls (includes only 8,500 1,000 900 1,775 business use) Total 100 $22,275

Explanation / Answer

Answer to Part 1 Airplane $       4,000.00 Lodging $       5,000.00 Meals $          500.00 Less : Reimbursed $     -7,800.00 Deductibe $       1,700.00 Oil $       8,500.00 Repair $       1,000.00 Insurance $          900.00 Depreciation $       1,775.00 Parking $          100.00 Total $     12,275.00 Deductible auto expenses $       9,820.00 80% used for business Total deduction $     11,520.00 Answer to Part 2 Calculation of Johnson's expense deduction using Standard Mileage Rate Total Business Miles =        26,400 Less: Commuting Miles =      2. 000 Net Miles Covered =          24,400 (Assumed That Personal Miles Are Not Covered) The Standard Mile.age Rate for 2015 Is 57.5 Cents Per Mile For 24,400 Miles It ls = 24,400*57.5 Cents = 1,403,000 Cents = $14,030 Hence Expense Deduction is $14,030

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