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Mercedes is self-employed and drives her car 12,000 miles a year for business and 3,000 miles a year for commuting and personal use. She wants
Mercedes is self-employed and drives her car 12,000 miles a year for business and 3,000 miles a year for commuting and personal use. She wants to claim the largest tax deduction possible for the business use of her car. Her total auto expenses for 2020 are as follows: Gas, oil, and maintenance Insurance $4,600 720 Interest on car loan 500 Depreciation 2,960 License 80 Parking fees and tolls (100% business) 130 Mercedes's total 2020 deduction related to her automobile is: a. $6,900. b. $7,430. c. $7,218. d. $8,990. e. $8,360
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