Cassandra owns her own business and drives her van 15,000 miles a year for business and 5,000 miles a year for commuting and personal use. She purchases a new van in 2016 and wants to claim the largest tax deduction possible for business use. Cassandra's total auto expenses for 2016 are as follows:
Gas, oil, and maintenance .................................... $ 5,760
Insurance ............................................................ 775
Interest on car loan .............................................. 1,200
Depreciation ...................................................... 3,160
License ............................................................... 180
Parking fees and tolls (all business) .............................. 240
Determine Cassandra's 2016 deduction for business use of the van.