Penny owns her own business and drives her car 12,000 miles a year for business and 3,000 miles a year for commuting and personal use. She wants to claim the largest tax deduction possible for the business use of her car. Her total expenses related to her auto for 2020 are as follows: Gas, oil, and maintenance $4,050 Insurance 720 Interest on car loan 500 Depreciation 2,960 License 80 Parking fees and tolls (100% business) 130 Penny's total deduction for the business use of the auto in 2020 is:

a.$6,778.

b.$7,030.

c.$7,430.

d.$6,248.

e.$6,900.

Answer rating: 100% (QA)

Method mileage rate 12000 x 0575 6900 business miles Standard Mileage Standard Interest on lo... View the full answer