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Melissa is self-employed and uses her personal automobile for business trips. During 2022, Melissa drives her car 60% for business use and incurs the
Melissa is self-employed and uses her personal automobile for business trips. During 2022, Melissa drives her car 60% for business use and incurs the following total expenses (based on 100% use of car): View the expenses. Melissa drives her car a total of 42,000 miles (25,200 business miles) during 2022. Read the requirements. Requirement a. What amount is deductible if Melissa uses the standard mileage method? $ 14,892 The amount deductible using the standard mileage method is Requirement b. What amount is deductible if Melissa uses the actual cost method? The amount deductible using the actual cost method is Expenses Gas and oil Repairs Depreciation Insurance and license fees Parking and tolls (business related) Total Print Done 6,000 1,500 4,900 2,400 150 14,950 -X Requirements a. What amount is deductible if Melissa uses the standard mileage method? b. What amount is deductible if Melissa uses the actual cost method? c. Can taxpayers switch back and forth between the mileage and actual methods each year? (The standard mileage rate method permits a deduction based on a mileage rate of 58.5 cents per mile for the year 2022.) Print Done
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