is a self-employed investment adviser who uses his automobile for business. David drove his automobile a total of 28,000 miles during 2020; 75 percent was business mileage. The actual cost of gasoline, oil, depreciation, repairs, and insurance for the year was $8,400. a. How much is David’s transportation deduction based on the standard mileage method? b. How much is David’s transportation deduction based on the actual cost method? c. Which method should David use to calculate his transportation deduction, assuming he used the standard mileage method
is a self-employed investment adviser who uses his automobile for business. David drove his automobile a total of 28,000 miles during 2020; 75 percent was business mileage. The actual cost of gasoline, oil, depreciation, repairs, and insurance for the year was $8,400. a. How much is David’s transportation deduction based on the standard mileage method? b. How much is David’s transportation deduction based on the actual cost method? c. Which method should David use to calculate his transportation deduction, assuming he used the standard mileage method
Chapter3: Business Income And Expenses
Section: Chapter Questions
Problem 6P: Teresa is a civil engineer who uses her automobile for business. Teresa drove her automobile a total...
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David is a self-employed investment adviser who uses his automobile for business. David drove his automobile a total of 28,000 miles during 2020; 75 percent was business mileage. The actual cost of gasoline, oil,
a. |
How much is David’s transportation deduction based on the standard mileage method? |
b. |
How much is David’s transportation deduction based on the actual cost method? |
c. |
Which method should David use to calculate his transportation deduction, assuming he used the standard mileage method in the prior tax year? Why? |
d. |
Where should he deduct the transportation expense on his current year tax return? |
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