Mario owns his own business and drives his car 15,000 miles a year for business and 7,500

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Mario owns his own business and drives his car 15,000 miles a year for business and 7,500 miles a year for commuting and personal use. He wants to claim the largest tax deduction possible for business use of his car. His total auto expenses for 2016 are as follows:
Gas, oil, and maintenance .................................. $ 8,900
Insurance ......................................................... 800
Interest on car loan .............................................. 480
Depreciation ................................................... 3,160
License ........................................................... 180
Parking fees and tolls (all business) .......................... 290
a. What is Mario's 2016 deduction using the standard mileage rate?
b. What is Mario's 2016 deduction using the actual cost method?
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Concepts In Federal Taxation 2017

ISBN: 9781305965119

24th Edition

Authors: Kevin E. Murphy, Mark Higgins

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