Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help ASP Paul is a self-employed investment adviser who uses his automobile for business. Paul drove his automobile a total of 25,000 miles during
please help ASP
Paul is a self-employed investment adviser who uses his automobile for business. Paul drove his automobile a total of 25,000 miles during 2021; 80 percent was business mileage. The actual cost of gasoline, oil, depreciation, repairs, and insurance for the year was $6,200. a. How much is Paul's transportation deduction based on the standard mileage method? b. How much is Paul's transportation deduction based on the actual cost method? c. Which method should Paul use to calculate his transportation deduction, assuming he used the standard mileage method in the prior tax year? Why? d. Where should he deduct the transportation expense on his current year tax return Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started