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1. the taxpayer may include miles from their home office to the client site as business miles. 2. the depreciation expense on the tesla will
1. the taxpayer may include miles from their home office to the client site as business miles.
2. the depreciation expense on the tesla will be capped $16000 for tax year 2020.
3. for the tax 2020, the taxpayer can take section 179 depreciations of $18000.
4. The taxpayer itemizes their deductions and can deduct the $1200 of personal property tax on their schedule a.
A taxpayer owns a Tesla, model S, which had a purchase price of $80,000 on March 1, 2018. The car was put into service on that date, and the taxpayer elected to use the standard mileage deduction. The taxpayer has a W-2 job approximately 40 miles from home, round trip, and drives the vehicle into the office 4 days a week. Additionally, the taxpayer has an interior design service as a sole proprietorship. The interior design jobs often require several trips to the client's home, which is often over 100 miles one way, but only 60 miles from their W-2 office. For tax year 2020 , the taxpayer drove 4,200 miles for the interior design business. Is the following statement true about this scenario
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