Question
In 2019, Jessica bought a new heavy truck for $42,000 to use 80% for her sole proprietorship. Total miles driven include 9,400 in 2019, 10,400
In 2019, Jessica bought a new heavy truck for $42,000 to use 80% for her sole proprietorship. Total miles driven include 9,400 in 2019, 10,400 in 2020, and 9,900 in 2021. (Use Table 6A-1) Required: a. If Jessica uses the standard mileage method, how much may she deduct on her 2021 tax return (miles were incurred ratably throughout the year)? b. What is the deduction for 2021 assuming the actual method was used from the beginning? Calculate depreciation only; the truck is not limited by the luxury auto rules. Also, assume 179 was not elected in the year of purchase. Note: For all requirements, do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Deduction a. b.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started