Jackson, a self-employed taxpayer, uses his automobile 90% for business and during 2021 drove a total of

Question:

Jackson, a self-employed taxpayer, uses his automobile 90% for business and during 2021 drove a total of 14,000 business miles. Information regarding his car expenses is listed below.

What is Jackson’s deduction in 2021 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?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

South-Western Federal Taxation 2022 Individual Income Taxes

ISBN: 9780357519073

45th Edition

Authors: James C. Young, Annette Nellen, William A. Raabe, Mark Persellin, William H. Hoffman

See More Books

Question Posted: Jul 13, 2022 01:15 AM

See More Questions

Jackson uses his automobile 90% for business and during 2016 drove a total of 14,000 business miles. Information regarding his car expenses is listed below. Business parking...
Jackson uses his automobile 90% for business and during 2014 drove a total of 14,000 miles. Information regarding his car expenses is listed below. Business parking...
Jackson uses his automobile 90% for business and during 2015 drove a total of 14,000 miles. Information regarding his car expenses is listed below. Business...
Why do the requirements drift once a project is under way?
Compute Macaulay and modified durations for the following bonds: a. A 5-year bond paying annual coupons of 4.432% and selling at par. b. An 8-year bond paying semiannual coupons with a coupon rate of...
Advertising is the primary source of revenue for newspaper companies. Over the past 10 to 15 years, the newspaper industry has been adjusting to changes in the mix of services that produce this...
Refer to QS 18-12 and compute raw materials inventory turnover and the number of days sales in raw materials inventory.
Sales for J. P. Hulett Inc. during the past year amounted to $4 million. Gross profits totaled $1 million, and operating and depreciation expenses were $500,000 and $350,000, respectively. Dividend...
Simplifying the ABC System: Approximately Relevant ABC Systems Patterson Company produces wafers for integrated circuits. Data for the most recent year are provided: Expected Consumption Ratios...
Suppose you get this information that related to Nevada, and as CFO, you must calculate the overhead cost based on these workflows: Maintenance Cutting Cafeteria Labelling Product Design Marketing...
Kim works for a clothing manufacturer as a dress designer. During 2021, she travels to New York City to attend five days of fashion shows and then spends three days sightseeing. Her expenses are as...
In 2021, Ava, an employee, has AGI of $58,000 and the following itemized deductions: Home office expenses $1,200 Union dues and work uniforms 350 Unreimbursed employee expenses 415 Gambling losses to...
Chapters 2 through 9 deal with specific knowledge needed to understand accounting and financial reporting by state and local governments. A continuous problem is available in additional resources...
Medical Helicopters In a study of helicopter usage and patient survival, results were obtained from 47,637 patients transported by helicopter and 111,874 patients transported by ground (based on data...
On January 1, 20X1, Laketown Company (the user) leased a truck for a seven-year period under a FINANCE LEASE and agreed to pay an annual lease payment of $6,000 at the end of each year. The interest...
ces Shouldice Hospital in Canada is widely known for one thing-hernia repair! In fact, that is the only operation it performs, and it performs a great many of them. Over the past two decades this...
2. An Annual General Meeting (AGM) is a meeting conducted annually where the members of an organization gather to discuss and vote on key issues. Public companies hold annual general meetings for...
The 3 P's of Sustainability refers to: O The groups of people that environmental efforts effect. O People, Planet, Profit O Population, Productivity, Principled None of the Above. Question 21 2...
Determine the radius of convergence of the following power series. Then test the endpoints to determine the interval of convergence. x2k +1 3k1
In the busy port of Chennai, India, the number of containers loaded onto ships during a 15-week period is as follows: 1. Develop a linear trend equation to forecast container loadings. 2. Using the...
Wearables have the potential to change the way organizations and workers conduct business. Discuss the implications of this statement.
How would a business process such as ordering a product for a customer in the field be changed if the salesperson were wearing a smartwatch equipped with Salesforce software?
What management, organization, and technology issues would have to be addressed if a company were thinking of equipping its workers with wearable computing devices?
1. Why might managers of small restaurants decide not to adopt the standard work hour approach to controlling labour cost? (minimum 150 words )
Which statement is true regarding the U.S. GAAP impairment test for limited life intangibles? A. U.S. GAAP impairment is likely to be greater than IFRS impairment. B. The impairment test for limited...
Which of the following is a limitation of both return on investment and residual income? A. Favors large units. B. There is disincentive for high return on investment units to invest. C. Can lead to...

Jackson, a self-employed taxpayer, uses his automobile 90% for business and during 2021 drove a total of

Question:

Business parking Auto insurance Auto club dues (includes towing service) Toll road charges (business-related) Oil changes and engine tune-ups Repairs Depreciation allowable Fines for traffic violations (incurred during business use) Gasoline purchases $ 140 1,300 180 200 210 160 2,850 320 2,800

Step by Step Answer:

a Deduction for the use of the car is given by Deducti...View the full answer

South-Western Federal Taxation 2022 Individual Income Taxes

Students also viewed these Business questions