Jackson, a self-employed taxpayer, uses his automobile 94% for business and during 2021 drove a total of 23,400 business miles. Information regarding his car expenses is listed below.

Business parking	$ 300
Auto insurance	3,000
Auto club dues (includes towing service)	360
Toll road charges (business-related)	450
Oil changes and engine tune-ups	480
Repairs	330
Depreciation allowable	6,000
Fines for traffic violations (incurred during business use)	600
Gasoline purchases	6,600

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? $fill in the blank 40d624ffafb4037_1

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A taxpayer has two choices in determining automobile expenses: the automatic mileage method and the actual cost method.

b. The automatic mileage method? $fill in the blank 0d29e3008fdcfbc_1

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Incorrect

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

actual expense methodstandard rate methodstandard rate method

. If the

actual expense methodstandard rate methodactual expense method

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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Partially correct

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Partially correct