Taxation question Auto Expenses. Amelie is self-employed and uses her personal automobile in connection with her business. During 2019, Amelie drove her car a total of 28,000 miles. Her business log shows that she drove 22,400 miles for business purposes. During 2019, Amelie incurred the following actual expenses based on 100% use, that is, 28,000 total miles: Gas and oil $7,800 Repairs and maintenance 1,200 Depreciation 5,800 Insurance 1,440 Licenses and fees 300 Total $$16,540 a. Compute Amelie’s deduction if she uses the actual cost method. b. Compute Amelie’s deduction if she uses the standard mileage method. c. Assume Amelie used the standard mileage method in 2019.
Auto Expenses. Amelie is self-employed and uses her personal automobile in connection with her business. During 2019, Amelie drove her car a total of 28,000 miles. Her business log shows that she drove 22,400 miles for business purposes. During 2019, Amelie incurred the following actual expenses based on 100% use, that is, 28,000 total miles:
Gas and oil $7,800
Repairs and maintenance 1,200
Insurance 1,440
Licenses and fees 300
Total $$16,540
a. Compute Amelie’s deduction if she uses the actual cost method.
b. Compute Amelie’s deduction if she uses the standard mileage method. c. Assume Amelie used the standard mileage method in 2019.
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