Required Information The following information apples to the questions displayed

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Required Information The following information apples to the questions displayed below Ryan is self-employed. This year Ryan used his personal auto for several long business trips. Ryan paid $2,190 for gasoline on these trpS. His depreciation on the car if he was using It fully for business purposes would be $3.600 During the year he drove his car o total of 21,100 miles (a combination of business and personal travel. (Do not round Intermediate celculetions, Round your final answer to the neerest doller amount . Ryon can provide wrtmen documentasion of the business purpose for trips totaling 4.220 mites What business expense amount can Ryan deduct fif any) for these tnps? Reference links TOSHIBA 4 5 6 8 ERTYU

Explanation / Answer

1. Ryan can claim the direct cost of these trips, including gas $2190 and depreciation on auto. However, the deduction of auto use is limited to direct cost related to the business and the pro-rata portion of depreciation. 2. Depreciation is calculated on pro-rata basis and that would be calculated as the business percentage of total mileage a. '4220*(3600/21100) $    720.00 ; personnel expenses b. As per standard mileage rate $ 1,500.00 ;alternate method for deducting personnel expenses (50c per mile) Maximum Deductable Amount $ 5,070.00

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