In 2019, Jessica bought a new heavy truck for $44,000 to use 80% for her sole proprietorship. Total miles driven include 9,800 in 2019, 10,800 in 2020, and 10,300 in 2021. (Use Table 6A-1) Required: a. If Jessica uses the standard mileage method, how much may she deduct on her 2021 tax return (miles were incurred ratably throughout the year)? b. What is the deduction for 2021 assuming the actual method was used from the beginning? Calculate depreciation only; the truck is not limited by the luxury auto rules. Also, assume §179 was not elected in the year of purchase. Note: For all requirements, do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Answer is complete but not entirely correct. Deduction a. $ 4,738 b. $ 6,758
In 2019, Jessica bought a new heavy truck for $44,000 to use 80% for her sole proprietorship. Total miles driven include 9,800 in 2019, 10,800 in 2020, and 10,300 in 2021. (Use Table 6A-1) Required: a. If Jessica uses the standard mileage method, how much may she deduct on her 2021 tax return (miles were incurred ratably throughout the year)? b. What is the deduction for 2021 assuming the actual method was used from the beginning? Calculate depreciation only; the truck is not limited by the luxury auto rules. Also, assume §179 was not elected in the year of purchase. Note: For all requirements, do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Answer is complete but not entirely correct. Deduction a. $ 4,738 b. $ 6,758
Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 24CE
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Transcribed Image Text:In 2019, Jessica bought a new heavy truck for $44,000 to use 80% for her sole proprietorship. Total miles driven include 9,800 in 2019,
10,800 in 2020, and 10,300 in 2021. (Use Table 6A-1)
Required:
a. If Jessica uses the standard mileage method, how much may she deduct on her 2021 tax return (miles were incurred ratably
throughout the year)?
b. What is the deduction for 2021 assuming the actual method was used from the beginning? Calculate depreciation only; the truck is
not limited by the luxury auto rules. Also, assume §179 was not elected in the year of purchase.
Note: For all requirements, do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.
Answer is complete but not entirely correct.
Deduction
a.
$
4,738
b.
$
6,758
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