Michelle is an employee who must use her personal automobile for employment-related business trips. During 2017, Michelle drives her car 60% for business use and incurs the following total expenses (100% use of car):

Gas and oil ................................................................ $12,000
Repairs .......................................................................... 2,800
Depreciation ................................................................ 4,700
Insurance and license fees ........................................ 2,600
Parking and tolls (business related) ............................ 400
Total ........................................................................  $22,500

Michelle drives her car a total of 40,000 miles (24,000 business miles) during 2017 and receives a reimbursement of 40 cents per business mile from her employer. Assume that an adequate accounting is made to Michelle's employer.

a. What amount is deductible (before the 2 % nondeductible floor) if Michelle uses the standard mileage method?

b. What amount is deductible (before the 2 % nondeductible floor) if Michelle uses the actual cost method?

c. Can taxpayers switch back and forth between the mileage and actual methods each year?

d. How would your answers above change if the tax year were 2018 rather than 2017?