Jackson, a self-employed taxpayer, uses his automobile 90% for business and during 2019 drove a total of 14,000 business miles. Information regarding his car expenses is listed below. Business parking $ 140 Auto insurance 1,300 Auto club dues (includes towing service) 180 Toll road charges (business-related) 200 Oil changes and engine tune-ups 210 Repairs 160 Depreciation allowable 2,850 Fines for traffic violations (incurred during business use) 320 Gasoline purchases 2,800 What is Jackson's deduction in 2019 for the use of his car if he uses: a. The actual cost method? $fill in the blank cc0d0ffd4014f9a_1 Feedback A taxpayer has two choices in determining automobile expenses: the automatic mileage method and the actual cost method. b. The automatic mileage method? $fill in the blank 261806f51043057_1 Feedback Incorrect c. What records must Jackson maintain? Keeping a written or electronic log of miles driven, the dates the automobile was used, the location of travel, and the business purpose is enough evidence for the standard rate method . If the actual expense method is used, keeping copies of receipts, canceled checks, and bills in addition to a mileage log is sufficient. Records and logs should be kept contemporaneously (e.g., updated weekly or daily)
Jackson, a self-employed taxpayer, uses his automobile 90% for business and during 2019 drove a total of 14,000 business miles. Information regarding his car expenses is listed below.
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What is Jackson's deduction in 2019 for the use of his car if he uses:
a. The actual cost method?
$fill in the blank cc0d0ffd4014f9a_1
A taxpayer has two choices in determining automobile expenses: the automatic mileage method and the actual cost method.
b. The automatic mileage method?
$fill in the blank 261806f51043057_1
c. What records must Jackson maintain?
Keeping a written or electronic log of miles driven, the dates the automobile was used, the location of travel, and the business purpose is enough evidence for the standard rate method . If the actual expense method is used, keeping copies of receipts, canceled checks, and bills in addition to a mileage log is sufficient. Records and logs should be kept contemporaneously (e.g., updated weekly or daily).
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