Question
Amelie is self-employed and uses her personal automobile in connection with her business. During 2020, Amelie drove her car a total of 28,000 miles. Her
Amelie is self-employed and uses her personal automobile in connection with her business. During 2020, Amelie drove her car a total of 28,000 miles. Her business log shows that she drove 22,400 miles for business purposes. During 2020, Amelie incurred the following actual expenses based on 100% use, that is, 28,000 total miles:
Gas and oil $7800
Repairs and maintenance $1200
Depreciation $5800
Insurance $1440
Licenses and fees $300
Total $16540
- Compute Amelies deduction if she uses the actual cost method.
- Compute Amelies deduction if she uses the standard mileage method.
- Assume Amelie used the standard mileage method in 2020. In addition to the automobile expenses, she made several business trips and incurred the following travel expenses while away from home overnight:
Airfare $4600
Hotel 1860
Meals $720
Taxi fees and tips $280
Total $7460
None of the above expenses were personal in nature. What are Amelies deductions in 2020 after all limitations?
- Would Amelies deduction in 2020 be for AGI or from AGI?
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