Art is a self-employed installer of home entertainment systems, and he drives his car frequently to...

 

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Art is a self-employed installer of home entertainment systems, and he drives his car frequently to installation locations. Art drove his car 11,000 miles for business purposes and 27,000 miles in total. His actual expenses, including depreciation, for operating the auto are $7,625 since he had to have the car repaired several times. Art has always used the actual cost method in the past. How much is Art's deductible auto expense for the year? Round any interim division calculations to five decimal places. Round the final answer to the nearest dollar. $3,106.48 X Feedback Check My Work Taxpayers may deduct the actual expenses of transportation, or they may be entitled to use a standard mileage rate to calculate their deduction for transportation costs. Taxpayers who use the actual cost method to calculate their transportation deductions must keep adequate cost records. The deductible portion of the total automobile expenses is based on the ratio of the number of business miles driven during the year to the total miles driven during the tax year multiplied by the total automobile expenses for the year. Art is a self-employed installer of home entertainment systems, and he drives his car frequently to installation locations. Art drove his car 11,000 miles for business purposes and 27,000 miles in total. His actual expenses, including depreciation, for operating the auto are $7,625 since he had to have the car repaired several times. Art has always used the actual cost method in the past. How much is Art's deductible auto expense for the year? Round any interim division calculations to five decimal places. Round the final answer to the nearest dollar. $3,106.48 X Feedback Check My Work Taxpayers may deduct the actual expenses of transportation, or they may be entitled to use a standard mileage rate to calculate their deduction for transportation costs. Taxpayers who use the actual cost method to calculate their transportation deductions must keep adequate cost records. The deductible portion of the total automobile expenses is based on the ratio of the number of business miles driven during the year to the total miles driven during the tax year multiplied by the total automobile expenses for the year.

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ANSWER To calculate Arts deductible auto expense for the ... View the full answer