Jackson, a self-employed taxpayer, uses his automobile 90% for business and during 2021 drove a total of

Question:

Jackson, a self-employed taxpayer, uses his automobile 90% for business and during 2021 drove a total of 14,000 business miles. Information regarding his car expenses is listed below.

What is Jackson’s deduction in 2021 for the use of his car if he uses:

a. The actual cost method?

b. The automatic mileage method?

c. What records must Jackson maintain?

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South-Western Federal Taxation 2022 Individual Income Taxes

ISBN: 9780357519073

45th Edition

Authors: James C. Young, Annette Nellen, William A. Raabe, Mark Persellin, William H. Hoffman

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Question Posted: Jul 13, 2022 01:15 AM

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Jackson, a self-employed taxpayer, uses his automobile 90% for business and during 2021 drove a total of

Question:

Business parking 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 $ 140 1,300 180 200 210 160 2,850 320 2,800

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a Deduction for the use of the car is given by Deducti...View the full answer

South-Western Federal Taxation 2022 Individual Income Taxes

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