I:7-46 Auto Expenses. Michelle is self-employed and uses her personal automobile for business trips. During 2022, Michelle drives her car 60% for business use and incurs the following total expenses (based on 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 2022.

a. What amount is deductible if Michelle uses the standard mileage method?

b. What amount is deductible if Michelle uses the actual cost method?

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