Jackson uses his automobile 86% for business and during 2017 drove a total of 16,400 business miles. Information regarding his car expenses is listed below.

Business parking	$ 210
Auto insurance	2,100
Auto club dues (includes towing service)	252
Toll road charges (business-related)	315
Oil changes and engine tune-ups	336
Repairs	231
Depreciation allowable	4,200
Fines for traffic violations (incurred during business use)	420
Gasoline purchases	4,620

What is Jackson's deduction in 2017 for the use of his car if he uses:

If required, round your answers to nearest dollar.

a. The actual cost method? $

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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? $

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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 standard rate method . If the actual 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).