Jackson, a self-employed taxpayer, uses his automobile 86% for business and during 2021 drove a total...
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Jackson, a self-employed taxpayer, uses his automobile 86% for business and during 2021 drove a total of 27,600 business miles. Information regarding his car expenses is listed below. Business parking $ 250 Auto insurance 2,500 Auto club dues (includes towing service) 300 Toll road charges (business-related) 375 Oil changes and engine tune-ups 400 Repairs 275 Depreciation allowable 5,000 Fines for traffic violations (incurred during business use) 500 Gasoline purchases 5,500 What is Jackson's deduction in 2021 for the use of his car if he uses: If required, round your answers to nearest dollar. a. The actual cost method? 12,835 X Feedback Check My Work A taxpayer has two choices in determining automobile expenses: the automatic mileage method and the actual cost method. b. The automatic mileage method? 9,025 X Jackson, a self-employed taxpayer, uses his automobile 86% for business and during 2021 drove a total of 27,600 business miles. Information regarding his car expenses is listed below. Business parking $ 250 Auto insurance 2,500 Auto club dues (includes towing service) 300 Toll road charges (business-related) 375 Oil changes and engine tune-ups 400 Repairs 275 Depreciation allowable 5,000 Fines for traffic violations (incurred during business use) 500 Gasoline purchases 5,500 What is Jackson's deduction in 2021 for the use of his car if he uses: If required, round your answers to nearest dollar. a. The actual cost method? 12,835 X Feedback Check My Work A taxpayer has two choices in determining automobile expenses: the automatic mileage method and the actual cost method. b. The automatic mileage method? 9,025 X
Expert Answer:
Answer rating: 100% (QA)
a To calculate Jackson deduction in 2021 using the actual cost method 250 375 86 x 2500 300 4... View the full answer
Related Book For
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
Posted Date:
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