London incurred $7,000 in actual expenses to operate the vehicle she uses in her home health aide business. During the year, London drove the vehicle a total of 12,000 miles. From January 1 to June 30, she had 1,500 business-use miles. From July 1 to December 31, she had 2,000 business-use miles. 2,500 miles were commuting miles. What is London's maximum vehicle expense deduction? $2,048 $2,128 $2,188 $7,000

London incurred $7,000 in actual expenses to operate the vehicle she uses in her home health aide business. During the year, London drove the vehicle a total of 12,000 miles. From January 1 to June 30, she had 1,500 business-use miles. From July 1 to December 31, she had 2,000 business-use miles. 2,500 miles were commuting miles. What is London's maximum vehicle expense deduction? $2,048 $2,128 $2,188 $7,000

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 56P

See similar textbooks

Similar questions

In 2018, Ensley drove her automobile 28,500 miles. She incurred the following expenses during the year related to the automobile:Gas and oil, lubrication: $1,800 Insurance: $980Repairs: $360Licenses and registration fees: $50Business parking and tolls: $170She uses the automobile 80% for business. Based on the data, Ensley's automobile deduction under the actual cost method is
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 $
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
Faisal has insured his vehicle with AXA insurance company. Throughout the year he experiences a loss in January costing 1,154, another in May costing 1,255 and the last in December costing 1,292. If Faisal has a straight deductible of 824. How much will the insurer pay?
Faisal has insured his vehicle with AXA insurance company. Throughout the year he experiences a loss in January costing 2,889, another in May costing 2,605 and the last in December costing 1,003. If Faisal has an aggregate deductible of 1,084. How much will the insurer pay?
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?
Jonathan placed his new car in service on January 1 of the current year. He drove it 15,000 miles in the current year, 60 percent for business.He incurred expenses, including straight line deprication, interest on the car loan, registration fees and repairs after a minor fender bender, of $10,500. What should his business deduction for automobile expenses be?
. 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?
Mr. O’s employer requires him to use his own vehicle for work and pay all of the vehicle’s operating costs. Mr. O. is not paid commissions. Mr. O. purchased a vehicle on July 1, 2020 for $37,290 including HST. Mr. O. drove this vehicle 25,000 kilometers, of which 15,000 were for work. The capital cost allowance for 2020 is $15,255. During the 6 months he owned vehicle he paid: bank loan interest $1,950 gas and oil 1,840 maintenance 300 insurance 1,400 licence plates 100 Calculate the amount Mr. O. can deduct from employment income. Show all calculations.
Mr. O's employer requires him to use his own vehicle for work and pay all of the vehicle's operating costs. Mr. O. is not paid commissions. Mr. O. purchased a vehicle on July 1, 2020 for $37,290 including HST. Mr. O. drove this vehicle 25,000 kilometers, of which 15,000 were for work. The capital cost allowance for 2020 is $15,255. During the 6 months he owned vehicle he paid: bank loan interest $1,950 gas and oil maintenance insurance 1,840 300 1,400 100 licence plates Required: Calculate the amount Mr. O. can deduct from employment income. Show all calculations.
Bradford's automobile insurance policy has a $1,400 deductible, with a $3,800 out-of-pocket limit and a 90/10 copay. This year, he was involved in a car accident, and was billed $10,800 in expenses. How much of this expense will Bradford be expected to pay out of his own pocket?
During the year, Sandy went from Detroit, MI to Chicago on business. She flew to Chicago on Sunday, worked on Monday and Tuesday, did some sightseeing on Wednesday and Thursday, and flew home on Friday. Her expenses are as follows: Air fare $400 Total Meal Expenses $600 ($100 per day) Assuming no reimbursement, calculate Sandy’s total allowable deduction for her travel expenses.