Jackson uses his automobile 90% for business and during 2015 drove a total of 14
ID: 2449926 • Letter: J
Question
Jackson uses his automobile 90% for business and during 2015 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 2015 for the use of his car if he uses:
a. The actual cost method?
$
b. The automatic mileage method?
$
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
Explanation / Answer
Business parking 140 Deduction for actual cost Auto insurance 1,300 Deduction for actual cost Auto club dues (includes towing service) 180 Not deductible Toll road charges (business-related) 200 Deduction for actual cost Oil changes and engine tune-ups 210 Deduction for actual cost Repairs 160 Deduction for actual cost Depreciation allowable 2,850 Deduction for actual cost Fines for traffic violations (incurred during business use) 320 Deduction for actual cost Gasoline purchases 2,800 Deduction for actual cost What is Jackson's deduction in 2015 for the use of his car if he uses: a. The actual cost method? $ 7980 b. The automatic mileage method? $ 7182 90% of the miles covered are assumed for business purposes
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