Jackson uses his automobile 90% for business and during 2018 drove a total of 14,000 business miles.

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Jackson uses his automobile 90% for business and during 2018 drove a total of 14,000 business miles. Information regarding his car expenses is listed below.

Business parking ..................................................................................$ 140
Auto insurance .....................................................................................1,300
Auto club dues (includes towing service) .............................................180
Toll road charges (business-related) ....................................................200
Oil changes and engine tune-ups .........................................................210
Repairs .....................................................................................................160
Depreciation allowable .......................................................................2,850
Fines for traffic violations (incurred during business use) ................320
Gasoline purchases .............................................................................2,800

What is Jackson's deduction in 2018 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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Related Book For  answer-question

South-Western Federal Taxation 2019 Comprehensive

ISBN: 9781337703017

42th Edition

Authors: David M. Maloney, William A. Raabe, William H. Hoffman, James C. Young

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