Mario owns his own business and drives his car 15,000 miles a year for business and 7,500
Question:
Mario owns his own business and drives his car 15,000 miles a year for business and 7,500 miles a year for commuting and personal use. He wants to claim the largest tax deduction possible for business use of his car. His total auto expenses for 2018 are as follows:
a. What is Mario's 2018 deduction using the standard mileage rate?
b. What is Mario's 2018 deduction using the actual cost method?
Transcribed Image Text:
Gas, oil, and maintenance Insurance Interest on car loan Depreciation License Parking fees and tolls (all business) $ 8,900 800 480 3,160 180 290
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a Under the standard mileage rate method Mario can deduct 8465 He can deduct 545 cents for each mile ...View the full answer
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Related Book For
Concepts In Federal Taxation
ISBN: 9781337702621
26th Edition
Authors: Kevin E. Murphy, Mark Higgins
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