Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Andrew is a sole proprietor and drove his car a total of 10,000 miles this year. 3,000 of these miles were for business purposes. He

Andrew is a sole proprietor and drove his car a total of 10,000 miles this year. 3,000 of these miles were for business purposes. He incurred the following expenses related to his car:

Gas: .......................................$1,200
Insurance: ...............................$500
Interest on his car loan: .......$800
Tolls to get to his clients: .....$100
Depreciation: .....................$2,000

Using the standard mileage method (rate $0.58 per mile) what is Andrew’s total automobile deduction this year?


Step by Step Solution

3.38 Rating (154 Votes )

There are 3 Steps involved in it

Step: 1

Answer Business Mileage is 3000 Standard Rate 058 Th... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Concepts In Federal Taxation

Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher

19th Edition

978-0324379556, 324379552, 978-1111579876

More Books

Students also viewed these Finance questions

Question

Describe software development trends

Answered: 1 week ago

Question

differentiate between good and bad ways of working hard;

Answered: 1 week ago