Question
What are the two methods of computing automobile expenses of self-employed taxpayers? A.Self-employed individuals can deduct business automobile expenses under either of two methods: the
What are the two methods of computing automobile expenses of self-employed taxpayers?
A.Self-employed individuals can deduct business automobile expenses under either of two methods: the actual expense method or the mileage method. The actual expense method includes gasoline, oil, repairs, and depreciation for the business-use portion of the automobile. The mileage method allows taxpayers to deduct 58 cents per business mile. Parking and tolls are not deductible under either method. Taxpayers do not have to be consistent from year to year.
B.Self-employed individuals can deduct business automobile expenses under either of two methods: the actual expense method or the mileage method. The actual expense method includes gasoline, oil, repairs, and depreciation for the business-use portion of the automobile. The mileage method allows taxpayers to deduct 58 cents per business mile. Parking and tolls can be deducted in addition to the amounts computed under both methods. Taxpayers generally must be consistent over the years.
C.Self-employed individuals can deduct business automobile expenses under either of two methods: the actual expense method or the mileage method. The actual expense method includes gasoline, oil, repairs, and depreciation for the business-use portion of the automobile. The mileage method allows taxpayers to deduct 56 cents per business mile. Parking and tolls are not deductible under either method. Taxpayers do not have to be consistent from year to year.
D.Self-employed individuals can deduct business automobile expenses under either of two methods: the actual expense method or the mileage method. The actual expense method includes gasoline, oil, repairs, and depreciation for the business-use portion of the automobile. The mileage method allows taxpayers to deduct 56 cents per business mile. Parking and tolls can be deducted in addition to the amounts computed under both methods. Taxpayers generally must be consistent over the years.
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