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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Income Tax Fundamentals 2014

ISBN: 9781285424545

32nd Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill

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