Bobby Reynolds, a new client of yours, is a selfemployed caterer in Santa Fe, New Mexico. Bobby

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Bobby Reynolds, a new client of yours, is a selfemployed caterer in Santa Fe, New Mexico. Bobby drives his personal van when delivering catered meals to customers. You have asked him to provide the amount of business miles driven using his vehicle. You are planning on using the standard mileage method to calculate Bobby’s deduction for transportation costs. Bobby has responded by saying, “Well, I don’t really keep track of my miles. I guess I drove around 3,000 miles last year for the business.” What would you say to Bobby?

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Income Tax Fundamentals 2021

ISBN: 9780357141366

39th Edition

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

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