am.102. Lara uses the standard mileage method for determining auto expenses. During 2023, she used her car as follows: 19,600 miles forbusiness, 3,920 miles for personal use, 5,880 miles for a move to a new job, 1,960 miles for charitable purposes, and 980 miles formedical visits. Presuming that all the mileage expenses are allowable (i.e., not subject to percentage limitations), what is Lara'sdeduction for:If required, round your answers to the nearest dollar.a. Business?12,838 VFeedbackCheck My WorkA taxpayer has two choices in determining automobile expenses: the standard (automatic) mileage method and the actual costb. Charitable?274c. Medical?216

To solve this problem, we'll use the standard mileage rates for 2023:- Business mileage: $0.655 per…

Answered: Lara uses the standard mileage method…

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter9: Deductions: Employee And Self- Employed-related Expenses

Section: Chapter Questions

Problem 28P

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Lara uses the standard mileage method for determining auto expenses. During 2023, she used her car as follows: 11,000 miles for business, 2,200 miles for personal use, 3,300 miles for a move to a new job, 1,100 miles for charitable purposes, and 550 miles for medical visits. Presuming that all the mileage expenses are allowable (i.e., not subject to percentage limitations), what is Lara's deduction for: If required, round your answers to the nearest dollar. a. Business? b. Charitable? c. Medical?
In 2020, Mary Kelly drove her personal car 2,800 miles for business purposes. She also incurred $182 in parking fees and $191 in turnpike tolls connected with her business trips. Compute Mary’s deduction for automobile expenses on her current year tax return, assuming all of the above expenses are valid and she elects to use the standard mileage allowance method to compute her deduction for automobile expenses. Assume Mary is self-employed.
In 2020, Britt drove her automobile 16,200 miles for business. She incurred $900 in gas expenses and $235 in tolls associated with the business mileage. Assuming Britt uses the standard mileage method, her deduction is $
Clark moved from Salt Lake City, Utah to Los Angeles, California in November 15, 2022, where he was stationed in the military. He drove his own car for the move, covering a total of 1,250 miles. During the trip, he spent $180 on parking and tolls, $680 on lodging, and $300 on meals. If he chooses to use the Standard Mileage Rate, what amount of his moving expenses can he deduct as an adjustment to income on his 2022 tax return? a) $ 1,220.50 b) $ 1,135.00 c) $ 781.25 d) $1,160.00
Teresa is a civil engineer who uses her automobile for business. Teresa drove her automobile a total of 11,965 miles during 2019, of which 80 percent was business mileage. The actual cost of gasoline, oil, depreciation, repairs, and insurance for the year was $6,440. Teresa is eligible to use the actual or standard method. How much is Teresa's transportation deduction based on the standard mileage method? $______________ How much is Teresa's transportation deduction based on the actual cost method? $______________ Which method should Teresa use to calculate her transportation deduction? __________________________________________________________________________ Why? _____________________________________________________________________ __________________________________________________________________________
. Paul is a self-employed investment adviser who uses his automobile for business. Paul drove his automobile a total of 20,000 miles during 2019; 75 percent was business mileage. The actual cost of gasoline, oil, depreciation, repairs, and insurance for the year was $6,200. a. How much is Paul's transportation deduction based on the standard mileage method? b. How much is Paul's transportation deduction based on the actual cost method? c. Which method should Paul use to calculate his transportation deduction, assuming he used the standard mileage method in the prior tax year? Why? d. Where should he deduct the transportation expense on his current year tax return?
Siena's record keeping application shows she also drove 1, 100 miles between deliveries and 560 miles driven between home and the first and last delivery point of the day. She also drove 10,000 miles for personal purposes. Siena does not have a separate car for personal use. She started using her car for business on May 17, 2023. Siena also kept receipts for the following out-of-pocket expenses:o $100 on tollso $50 for parkingo $48 for parking ticketso $150 for snacks and lunches Siena consumed while working Siena provided the Form 1099 - K that she received from Delicious Deliveries. Siena contributed $6,000 to her traditional IRA. She also contributed to her retirement plan at work. Siena, Kenna, and Stacy are U.S. citizens, have valid Social Security numbers, and lived in the United States all year. 12. How many miles can Siena claim for the business mileage expense?a. 1,100 b. 5,700 c. 6,800 d. 7,360
Jose purchased a vehicle for business and personal use. In 2022, he used the vehicle 20,000 miles (80% of total) for business and calculated his vehicle expenses using the standard mileage rate (mileage was incurred ratably throughout the year). He paid $1,800 in interest and $175 in property taxes on the car. Required: Calculate the total business deduction related to the car. Do not round intermediate calculations. Round your final answer to the nearest whole number. Schedule C Schedule A Total Deduction
David is a self-employed investment adviser who uses his automobile for business. David drove his automobile a total of 28,000 miles during 2020; 75 percent was business mileage. The actual cost of gasoline, oil, depreciation, repairs, and insurance for the year was $8,400. a. How much is David’s transportation deduction based on the standard mileage method? b. How much is David’s transportation deduction based on the actual cost method? c. Which method should David use to calculate his transportation deduction, assuming he used the standard mileage method in the prior tax year? Why? d. Where should he deduct the transportation expense on his current year tax return?
Compute Mary’s income or deductions for 2020 using (1) the cash basis and (2) the accrual basis for each of the following. In May 2020, Mary paid a license fee of $1,200 for the period June 1, 2020, through May 31, 2021. In December 2020, Mary collected $10,000 for January 2021 rents. In January 2020, Mary collected $2,000 for December 2020 rents. In June 2020, Mary paid $7,200 for an office equipment service contract for the period July 1, 2020, through December 31, 2021. In June 2020, Mary purchased office furniture for $273,000. She paid $131,000 in cash and gave a $142,000 interest-bearing note for the balance. The office furniture has a MACRS cost recovery period of seven years. Mary did not make the § 179 election and elected not to take additional first-year depreciation.
Amelie is self-employed and uses her personal automobile in connection with her business. During 2020, Amelie drove her car a total of 28,000 miles. Her business log shows that she drove 22,400 miles for business purposes. During 2020, Amelie incurred the following actual expenses based on 100% use, that is, 28,000 total miles: (The standard mileage rate method permits a deduction based on a mileage rate of 57.5 cents per mile for the year 2020.) (Click the icon to view the expenses.) Read the requirements. Requirement a. Compute Amelie's deduction if she uses the actual cost method. The amount deductible using the actual cost method is $13,232 Requirement b. Compute Amelie's deduction if she uses the standard mileage method. The amount deductible using the standard mileage method is i Data Table Gas and oil Repairs and maintenance Depreciation Insurance Licenses and fees Total Print Done $ - X 7,800 1,200 5,800 1,440 300 $ 16,540
During 2022, she drove the car 16,200 miles. 12,325 of those miles were for business purposes (7,300 miles through 6/30, 5,025 miles through 12/31). She paid a total of $650 of insurance, $1,280 of interest on her car loan, $830 for repairs & maintenance, $270 for licensing, and $2,310 for fuel. She also paid $225 for parking and tolls exclusively on business trips. She uses the standard mileage rate to compute her transportation deduction for the year. What is her total deduction for expenses related to her car for 2022.

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