Masoud drove his vehicle exclusively for ride-hailing in 2022. He drove 8,354 total miles, 4,300 from January 1 to June 30 and the remainder (4,054) after that. His actual expenses were: Gas and oil $2,150 Auto insurance $1,350 New tires $500 Registration fees $450 Depreciation $1,200 New brakes $300 Speeding ticket $250 What is Masoud's allowable vehicle expense deduction?

Masoud drove his vehicle exclusively for ride-hailing in 2022. He drove 8,354 total miles, 4,300 from January 1 to June 30 and the remainder (4,054) after that. His actual expenses were: Gas and oil $2,150 Auto insurance $1,350 New tires $500 Registration fees $450 Depreciation $1,200 New brakes $300 Speeding ticket $250 What is Masoud's allowable vehicle expense deduction?

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter3: Business Income And Expenses

Section: Chapter Questions

Problem 6P: Teresa is a civil engineer who uses her automobile for business. Teresa drove her automobile a total...

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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? _____________________________________________________________________ __________________________________________________________________________
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In January 2022, Mr. D, who is self-employed, purchased a new automobile, which he uses 100% for business. During 2022, he drove the car 14,000 miles. Half of those miles were driven January through June. Mr. D also owns another automobile, which he uses occasionally for business but primarily for personal purposes. During 2022, he drove the second car 2,000 business miles. Again, half of those miles were driven January through June. The second car is not fully depreciated. What is the amount of Mr. D's automobile expense deduction using the standard mileage rate? O $7,840 O $8,470 O $8,960 O $9,680
On July 1, 2017, Brent purchases a new automobile for $49,000. He uses the car 88% for business and drives the car as follows: 7,000 miles in 2017, 17,500 miles in 2018, 19,600 miles in 2019, and 14,000 miles in 2020. Determine Brent's basis in the business portion of the auto as of January 1, 2021, under the following assumptions: If required, round your computations to the nearest dollar. a. Brent uses the automatic mileage method. Compute his basis adjustments for depreciation for each year. Click here to access the basis adjustment table. 2017: $fill in the blank 5d0ce403cfe2029_1 2018: $fill in the blank 5d0ce403cfe2029_2 2019: $fill in the blank 5d0ce403cfe2029_3 2020: $fill in the blank 5d0ce403cfe2029_4 Brent's adjusted basis in the auto on January 1, 2021, is $fill in the blank 5d0ce403cfe2029_5. b. Brent uses the actual cost method. [Assume that no § 179 expensing is claimed and that 200% declining-balance cost recovery with the half-year convention is…