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Information regarding his car expenses is listed below. Business parking $170 Auto insurance 1,700 Auto club dues (includes towing service) 204 Toll road charges
Information regarding his car expenses is listed below. Business parking $170 Auto insurance 1,700 Auto club dues (includes towing service) 204 Toll road charges (business-related) 255 Oil changes and engine tune-ups 272 Repairs 187 Depreciation allowable 3,400 Fines for traffic violations (incurred during business use) 340 Gasoline purchases 3,740 What is Jackson's deduction in 2021 for the use of his car if he uses: If required, round your answers to nearest dollar. a. The actual cost method? b. The automatic mileage method? c. What records must Jackson maintain? Keeping a written or electronic log of miles driven, the dates the automobile was used, the location of travel, and the business purpose is enough evidence for the If the is used, keeping copies of receipts, canceled checks, and bills in addition to a mileage log is sufficient. Records and logs should be kept contemporaneously (e.g., updated weekly or daily)..
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