Jackson uses his automobile 90% for business and during 2016 drove a total of 14,000 business miles.

Question:

Jackson uses his automobile 90% for business and during 2016 drove a total of 14,000 business miles. Information regarding his car expenses is listed below.
Business parking .......................................................$ 140
Auto insurance .........................................................1,300
Auto club dues (includes towing service) .............................180
Toll road charges (business-related) ...................................200
Oil changes and engine tune-ups .......................................210
Repairs .....................................................................160
Depreciation allowable ................................................2,850
Fines for traffic violations (incurred during
business use) ...............................................................320
Gasoline purchases .....................................................2,800
What is Jackson's deduction in 2016 for the use of his car if he uses:
a. The actual cost method?
b. The automatic mileage method?
c. What records must Jackson maintain?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

South Western Federal Taxation 2017 Comprehensive

ISBN: 9781305874169

40th Edition

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young

Question Posted: