Question
In 2018 a self employed Chester -pry bought a car for $45,000 for both business and personal use. During 2019 he drove 18,000 miles on
In 2018 a self employed Chester -pry bought a car for $45,000 for both business and personal use. During 2019 he drove 18,000 miles on business trips and 2,000 miles for personal use. He incurred $14,500 of total out of pocket car expenses during the year. In additon he paid $50 for tolls on his business trips and $100 for parking while on business. He also paid $160 for tolls on personal trips and $180 for parking which was non-business related. Based on this information, what is the amount of car expenses that are deductible as a business related expenses on Chester's 2019 tax return if he uses the actual cost method? Show computations.
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