Teresa is a civil engineer who uses her automobile for business. Teresa drove her automobile a total
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Teresa is a civil engineer who uses her automobile for business. Teresa drove her automobile a total of 21,732 miles during 2013, of which 95 percent was business mileage. The actual cost of gasoline, oil, depreciation, repairs, and insurance for the year was $8,300.
a. How much is Teresa's transportation deduction based on the standard mileage method? $____________
b. How much is Teresa's transportation deduction based on the actual cost method? $____________
c. Which method should Teresa use to calculate her transportation deduction? Why?
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Related Book For
Income Tax Fundamentals 2014
ISBN: 9781285424545
32nd Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill
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