Amelie is an employee who uses her personal automobile in connection with her job. During 2017, Amelie drove her car a total of 28,000 miles. Her business log shows that she drove

22,400 miles for business purposes. She is reimbursed $0.30 per mile from her employer for her business miles and she makes an adequate accounting to her employer. During 2017, Amelie incurred the following actual expenses based on 100% use, that is, 28,000 total miles: (The standard mileage rate method permits a deduction based on a mileage rate of 53.5 cents per mile for the year 2017.)

Data Table

Gas and oil

$7,800

Repairs and maintenance

1,200

Depreciation

5,800

Insurance

1,440

Licenses and fees

300

$16,540

a.Compute Amelie's deduction before the 2% of AGI floor if she uses the actual cost method.

b.Compute Amelie's deduction before the 2% of AGI floor if she uses the standard mileage method.

c.Assume Amelie used the standard mileage method in 2017 and received the 30

cents per mile reimbursement. In addition to the automobile expenses, she made several business trips and incurred the following travel expenses:

Save Accounting Table...+Copy to Clipboard...+Airfare

$4,600

Hotel

1,860

Meals and entertainment

720

Taxi fees and tips

280

$7,460

None of the above expenses were personal in nature and she received total reimbursements (including the mileage reimbursement) from her employer of

$11,220.

If Amelie's AGI was $120,000,

what is her deduction in 2017 after all limitations?

d.

How would your answers to Parts a through c change if the tax year were 2018 rather than

2017?

e.

How would your answer to Part a above change in 2018 if Amelie were self-employed?