Problem $9-21($Algorithmic$)($LO$.2)$

Jackson, a self$-$employed taxpayer, uses his automobile $72\%$ for business and during $2023$ drove a total of $17,800$ business miles.

Information regarding his car expenses is listed below.

Business parking

What is Jackson's deduction in $2023$ for the use of his car if he uses:

If required, round your answers to nearest dollar.

a$.$ The actual cost method?

$

Auto insurance

Auto club dues $($includes towing service$)$

Toll road charges $($business$-$related$)$

Oil changes and engine tune$-$ups

Repairs

Depreciation allowable

Fines for traffic violations $($incurred during business use$)$

Gasoline purchases

$4,840$

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A taxpayer has two choices in determining automobile expenses: the automatic mileage method and the actual cost method.

b$.$ The automatic mileage method?

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c$.$ What records must Jackson maintain?

Keeping a written or electronic log of miles driven, the dates the automobile was used, the location of travel, and the business purpose is

enough evidence for the standard rate method $.$ If the actual expense method $x$ is used, keeping copies of receipts,

canceled checks, and bills in addition to a mileage log is sufficient. Records and logs should be kept contemporaneously $($e$.$g$.,$ updated

weekly or daily$).$