In 2014, Micah Johnson (SSN 000-22-1111) is employed as a manager and incurs the
ID: 2468349 • Letter: I
Question
In 2014, Micah Johnson (SSN 000-22-1111) is employed as a manager and incurs the following unreimbursed employee business expenses:
Airplane and taxi fees: $4000.00
Lodging away from home: $5000.00
Meals while away from home: $1000.00
Automobile expenses (related to 100% of the use of his personal automobile):
Gasoline and oil: $8500.00
Repairs: $1000.00
Insurance: $900.00
Depreciation: $1775.00
Parking and tolls (includes only business use): $100.00
Total: $22275.00
Johnson receives a $7800.00 reimbursement for the travel expenses. He did not receive any reimbursement for the auto expenses. He uses his personal automobile 80% for business use and placed his current automobile in service on October 1, 2010. Total business miles driven during the year (evenly throughout the year) amount to 26,400, his commuting miles in 2014 amount to 2000 (average daily roundtrip of 7 miles), and other personal miles amount to 4600 miles. Johnson's AGI is $60,000, and he has no ther misc. itemized deductions.
a) calculate Johnson's expense deduction using the 2014 Form 2106 based on actual automobile expenses and other employee business expenses.
b) calculate Johnson's expense deduction for 2014 using the standard mileage rate method and other business employee expenses (assume that none of teh restrictions on the use of the standard mileage rate method are applicable).
Explanation / Answer
In 2014, Micah Johnson (SSN 000-22-1111) is employed as a manager and incurs the
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