Cassandra owns her own business and drives her van 15,000 miles a year for business and 5,000

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Cassandra owns her own business and drives her van 15,000 miles a year for business and 5,000 miles a year for commuting and personal use. She purchases a new van in 2020 and wants to claim the largest tax deduction possible for business use. Cassandra’s total auto expenses for 2020 are as follows:

Gas, oil, and maintenance ...........$ 6,560

Insurance ............................................775

Interest on car loan ........................1,200

Depreciation ...................................3,160

License ...............................................180

Parking fees and tolls (all business).. 240

Determine Cassandra’s 2020 deduction for business use of the van.

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Concepts In Federal Taxation 2021

ISBN: 9780357141212

28th Edition

Authors: Kevin E. Murphy, Mark Higgins, Randy Skalberg

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