Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jackson, a self-employed taxpayer, uses his automobile 82% for business and during 2020 drove a total of 27,600 business miles. Information regarding his car expenses

Jackson, a self-employed taxpayer, uses his automobile 82% for business and during 2020 drove a total of 27,600 business miles. Information regarding his car expenses is listed below.

Business parking $ 260
Auto insurance 2,600
Auto club dues (includes towing service) 312
Toll road charges (business-related) 390
Oil changes and engine tune-ups 416
Repairs 286
Depreciation allowable 5,200
Fines for traffic violations (incurred during business use) 520
Gasoline purchases 5,720

What is Jackson's deduction in 2020 for the use of his car if he uses:

If required, round your answers to nearest dollar.

a. The actual cost method?

answer is not 12875, thank you.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

More Books

Students also viewed these Accounting questions

Question

a valuing of personal and psychological privacy;

Answered: 1 week ago