Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Chapter 3, Problem 7P
To determine
Introduction: Traveling expenses are necessary expenses for taxpayers incurred during the course of business. These expenses are deductible as long as they are reasonable, lavish, or extravagant transportation expenses are not allowed to be deducted.
The deductible auto expense deductible by A during the year.
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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?
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Chapter 3 Solutions
Income Tax Fundamentals 2020
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