Ryan is self-employed. This year Ryan used his personal auto for several long business trips. He paid $1,850 for gasoline trips. Ryan estimates that he drove approximately 2,220 miles on business trips, but he can only provide written docume business purpose for trips totaling 1,400 miles. His depreciation on the car if he was using it fully for business purposes would be $3,000. During the year, he drove his 18,500 miles (a combination of business and personal travel). What business expense amount can Ryan deduct (if any) for these trips? (Do not found intermediate calculations. Rour answers to the nearest whole dollar amount.) Maximum deductible amount

Ryan is self-employed. This year Ryan used his personal auto for several long business trips. He paid $1,850 for gasoline trips. Ryan estimates that he drove approximately 2,220 miles on business trips, but he can only provide written docume business purpose for trips totaling 1,400 miles. His depreciation on the car if he was using it fully for business purposes would be $3,000. During the year, he drove his 18,500 miles (a combination of business and personal travel). What business expense amount can Ryan deduct (if any) for these trips? (Do not found intermediate calculations. Rour answers to the nearest whole dollar amount.) Maximum deductible amount

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Sidney is a car salesman. As a result of being the best salesman for the year, his employer permits him to buy a new BMW with a cost of Fair Market Value to the dealer of $40,000 for only $25,000. This is to be Sidney's personal vehicle and not used in business. As a result of this purchase, Sydney must report. Zero Income or Loss $40,000 income $15,000 income $20,000 income
Curt is self-employed as a real estate salesman and drives his car frequently to take clients to see homes for sale. Curt drove his car 20,000 miles for business purposes and 25,000 miles in total. His actual expenses for operating the auto including depreciation are $10,000 since he drove it so much during the year. Curt has used the actual cost method since he started his business in 2015. How much is Curt’s deductible auto expense for the year?
Allan’s employer purchased a car in March 2020 at a cost of $44,000 GST inclusive and provided the car to Allan on 1 April 2020. Allan garages the car at his home each night during the 2020/21 FBT year. Allan traveled 40,000 kilometers in the car during the year, and the odometer and logbook records show that 10,000 kilometers were for business purposes and 30,000 kilometers were for private purposes. The operating costs of the car (not including deemed depreciation and deemed interest) were $9,000 (GST inclusive). Allan did not make any contribution but provided all the necessary documents for his employer to calculate his FBT liability. Advise Allan and his employer of the tax consequences of this transaction.
Helen invested $5,000 on a new computer for her company. She uses the computer for business 35 percent of the time and for personal purposes 65 percent of the time. what is the business cost of the computer she uses to calculate her Section 179 deduction?
Barbara sold land she purchased three months earlier for use in her business. Her cost and adjusted basis in the land prior to the sale were $80,000. She also incurred $10,000 in expenses related to the sale. The buyer paid $80,000 cash and assumed barbarous 20,000 mortgage on the property. What is the amount of Barbara's gain, and where on form 4797 will she report the sale?
Max uses a Ford F-350 Truck (it is a dually with a lift kit and has a 6.7L Power Stroke Turbo Diesel engine; Gross Vehicle Weight = 9,900 pounds) 100% for business. He acquired and placed the vehicle in service in his business in March of the current year. The vehicle cost $96,000. If Max takes the maximum amount of depreciation available to him for 2023, then his maximum deduction allowed this year is: A) $28,900. B) $53,680. C) $85,264. D) $96,000.
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
Bruce and Amanda are married during the tax year. Bruce is a botanist at Green Corporation. Bruce earns a salary of $56,000 per year. Green Corporation has an accountable reimbursement plan. During the year, Bruce has $5,000 of employee expenses. Green Corporation reimburses Bruce for only $4,000 of expenses.Bruce decides to put $5,500 into a Traditional IRA. Amanda owns a financial consulting firm as a sole proprietor (it qualifies as a full trade or business). Amanda generates $80,000 of revenues during the year. She has the following business payments associated with her firm:● Utilities: $2,000● Office Rent: $14,000● Self-Employment Tax: $5,000● Salary for her secretary: $20,000● Fines/Penalties: $8,000● Payroll Taxes (Employer Portion): $1,000● Business Meals: $2,000● Bribe to police officer to forgive parking violation $1,500Due to the income and expenses above, Amanda has $39,500 of Qualified Business Income. Also, during the year a tornado damaged the roof of their personal…
Manji
Benjamin is an artist. He sold some assets last week. He requests you to calculate the Capital Gain Tax (CGT) consequences of the following transactions: He purchased the following items last eight months ago. an antique ceramic bowl (for $4,000), An antique vase (for $5,000), A colourful painting (for $15,000), A TV sound system for his personal use (for $10,000) and Shares of a reputed Company (for $6,000) Last week he sold these assets as follows: an antique ceramic bowl (for $6,000), An antique vase (for $1,000), A colourful painting (for $ 5,000), A TV sound system for his personal use (for $9,000) and Shares of a reputed Company (for $26,000) Based on the legal provisions, discuss capital gain tax assets and calculate his net capital gain or net capital loss for the current tax year
Terry purchased a machine for $15,000; the seller is holding the note. Terry paid $2,500 for the required wiring and installation. Terry has deducted depreciation on the machine for 3 years totaling $4,500. Terry owes $5,000 to the Seller. What is Terry’s adjusted basis in the machine? Group of answer choices
Steven is an accountant and maintains an office in his home. Expenses of the business (other than home office expenses) are $15,000. Steven incurs the following home office expenses: Real property taxes on residence: $2,400 Interest expense on residence: $4,000 Operating expenses of residence: $3,200 Depreciation on residence (based on 8% business use): $450. His office occupies 10% of the total floor space of his residence. Gross income from his business is $34,000. Assuming that Steven uses the regular method, what is his allowable office in the home deduction?