Mario owns his own business and drives his car 15,000 miles a year for business and 7,500
Question:
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 2020 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 2020 deduction using the standard mileage rate method?
b. What is Mario’s 2020 deduction using the actual cost method?
Step by Step Answer:
Concepts In Federal Taxation 2021
ISBN: 9780357141212
28th Edition
Authors: Kevin E. Murphy, Mark Higgins, Randy Skalberg