On July, 2013, a taxpayer leases a car for 24 months. The terms of the lease require
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Question:
On July, 2013, a taxpayer leases a car for 24 months. The terms of the lease require the taxpayer to pay $1,000 a month. Based on the value of the automobile, the inclusion amounts for years 1 through 3 are $313, $590, and $602, respectively. If the taxpayer uses the car 60% of the time for business, what amount should be deducted as lease expense on Schedule C in 2013?
1) 43.1% 2) 30.4% 3) 77% 4) 90.50% 5) 92.6%
Please explain why?
Related Book For
Canadian Income Taxation planning and decision making
ISBN: 9781259094330
17th edition 2014-2015 version
Authors: Joan Kitunen, William Buckwold
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