Teresa is a civil engineer who uses her automobile for business. Teresa drove her automobile a total
Question:
Teresa is a civil engineer who uses her automobile for business. Teresa drove her automobile a total of 21,732 miles during 2014, 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? _________________________________________________________________________________________________________________
Step by Step Answer:
Income Tax Fundamentals 2015
ISBN: 9781305177772
33rd Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill