Amelie is an employee who uses her personal automobile in connection with her job. During 2015, Amelie drove her car a total of 28,000 miles. Her business log shows that she drove 22,400 miles for business purposes. She is reimbursed $0.30 per mile from her employer for her business miles and she makes an adequate accounting to her employer. During 2015, Amelie incurred the following actual expenses based on 100% business use, that is, 28,000 miles:
Gas and oil ……………………………….. $ 7,800
Repairs and maintenance ………………… 2,300
Depreciation ……………………………… 5,800
Insurance ………………………………… 1,440
Licenses and fees ………………………… 300
$17,640
a. Compute Amelie’s deduction before the 2% of AGI floor if she uses the actual cost method.
b. Compute Amelie’s deduction before the 2% of AGI floor if she uses the standard mileage method.
c. Assume Amelie used the standard mileage method in 2015 and received the 30 cents per mile reimbursement. In addition to the automobile expenses, she made several business trips and incurred the following travel expenses:
Airfare ………………………………… $ 4,600
Hotel …………………………………. 1,860
Meals and entertainment …………….. 720
Taxi fees and tips …………………….. 280
$7,460
None of the above expenses were personal in nature and she received total reimbursements (including the mileage reimbursement) from her employer of $11,220. If Amelie’s AGI was $120,000, what is her deduction in 2015 after all limitations?