Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ODOOR Calculator Problem 9-22 (LO. 2) Jackson, a self-employed taxpayer, uses his automobile 90% for business and during 2020 drove a total of 14,000 business

image text in transcribed
ODOOR Calculator Problem 9-22 (LO. 2) Jackson, a self-employed taxpayer, uses his automobile 90% for business and during 2020 drove a total of 14,000 business miles. Information regarding his car expenses is listed below. Business parking $ 140 Auto Insurance 1,300 Auto club dues (includes towing service) 180 Toll road charges (business-related) 200 Oil changes and engine tune-ups 210 Repairs 160 Depreciation allowable 2,850 Fines for traffic violations (incurred during business use) 320 Gasoline purchases 2,800 What is Jackson's deduction in 2020 for the use of his car if he uses: a. The actual cost method? b. The automatic mileage method? 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 If the Isused, keeping coples of receipts, canceled checks, and bills in addition to a mileage log is sufficient. Records and logs should be kept contemporaneously (eg, updated weekly or daily). Check My Work 1 more Check My Work uses remaining Previ All work saved

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

Financial Accounting Working Papers Tools For Business Decision Making

Authors: Paul D. Kimmel ,Jerry J. Weygandt ,Donald E. Kieso

6th Edition

0470887931, 978-0470887936

More Books

Students also viewed these Accounting questions

Question

How can perpetuity have a finite value?

Answered: 1 week ago

Question

What is Indian Polity and Governance ?

Answered: 1 week ago