In 2019, Jessica bought a new heavy truck for $38,000 to use 80% for her sole...
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In 2019, Jessica bought a new heavy truck for $38,000 to use 80% for her sole proprietorship. Total miles driven include 8,600 in 2019, 9,600 in 2020, and 9,100 in 2021. (Use Table 6A-1) Required: a. If Jessica uses the standard mileage method, how much may she deduct on her 2021 tax return (miles were incurred ratably throughout the year)? b. What is the deduction for 2021 assuming the actual method was used from the beginning? Calculate depreciation only; the truck is not limited by the luxury auto rules. Also, assume §179 was not elected in the year of purchase. Note: For all requirements, do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. J Deduction ← Chrome File Edit View → C * My Courses X TABLE 6A-1 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line* Recovery Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 History Bookmarks Profiles Tab Window Help ezt.prod.mheducation.com/Media/Connect_Production/bne/cruz15e/Table6A_1.htm ♫ 9 tv Mail - Baus, X D2L 6-2 Activity: X M Question 4 X 3-Year 33.33 44.45 14.81 7.41 A JUL 4 Half-Year Convention 7-Year 14.29 24.49 17.49 12.49 8.93 8.92 8.93 4.46 15 5-Year 20.00 32.00 19.20 11.52 11.52 5.76 16 17 18 19 20 21 May not be used for farm business property generally placed in service after 1988. See Table 14, Rev. Proc. 87-57, 1987-2 CB 687. https://ezt.p x 10-Year 10.00 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.56 6.55 3.28 O 15-Year 5.00 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 1 https://ezt.p X 20-Year 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 Mc Graw Hill A Simple Inc X Sat Jul 15 9:22 PM n 2015, Jess X T Update: In 2019, Jessica bought a new heavy truck for $38,000 to use 80% for her sole proprietorship. Total miles driven include 8,600 in 2019, 9,600 in 2020, and 9,100 in 2021. (Use Table 6A-1) Required: a. If Jessica uses the standard mileage method, how much may she deduct on her 2021 tax return (miles were incurred ratably throughout the year)? b. What is the deduction for 2021 assuming the actual method was used from the beginning? Calculate depreciation only; the truck is not limited by the luxury auto rules. Also, assume §179 was not elected in the year of purchase. Note: For all requirements, do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. J Deduction ← Chrome File Edit View → C * My Courses X TABLE 6A-1 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line* Recovery Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 History Bookmarks Profiles Tab Window Help ezt.prod.mheducation.com/Media/Connect_Production/bne/cruz15e/Table6A_1.htm ♫ 9 tv Mail - Baus, X D2L 6-2 Activity: X M Question 4 X 3-Year 33.33 44.45 14.81 7.41 A JUL 4 Half-Year Convention 7-Year 14.29 24.49 17.49 12.49 8.93 8.92 8.93 4.46 15 5-Year 20.00 32.00 19.20 11.52 11.52 5.76 16 17 18 19 20 21 May not be used for farm business property generally placed in service after 1988. See Table 14, Rev. Proc. 87-57, 1987-2 CB 687. https://ezt.p x 10-Year 10.00 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.56 6.55 3.28 O 15-Year 5.00 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 1 https://ezt.p X 20-Year 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 Mc Graw Hill A Simple Inc X Sat Jul 15 9:22 PM n 2015, Jess X T Update:
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Answer rating: 100% (QA)
SOLUTION a If Jessica uses the standard mileage method she may deduct the cost of operating the truck using the standard mileage rate which was 56 cents per mile for 2021 To calculate the deduction we ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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