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

Question
Asked Apr 4, 2019

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: $980
Repairs: $360
Licenses and registration fees: $50
Business parking and tolls: $170
She uses the automobile 80% for business. Based on the data, Ensley's automobile deduction under the actual cost method is

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Expert Answer

Step 1

The actual cost method is a method that claims the expenses (which can be used as valid deductions for tax return) related to the use of an automobile for business purpose.

Step 2

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