7. Mike is a Marketing Partner in New York City. An important manuscript needed

Question

7. Mike is a Marketing Partner in New York City. An important manuscript needed to be delivered to his client in Montgomery, Alabama as soon as possible and expediting the package wouldn’t cut it, so Mike drove from NYC to Montgomery (1,033.8 miles total- one way). On the way back up, Mike took a quick side-trip to Washington, DC, which added an additional 50 miles to his drive. Applying the standard mileage deduction, how much is Mike allowed to deduct on his taxes? (2 pts)

$563.42

$590.67

$1,126.84

$1,154.09

Explanation / Answer

Hence total business miles driven are 1033.8*2=2067.6

Per mile deduction = 54.5

Total deductions=2067.6*54.5=$1126.84

The extra miles are not for business purposes hence not included.

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