Tirta has a home décor consulting business. She drives a 2013 Chevy Sonic (which she only uses for business) to her clients' houses for meetings. The vehicle is fully depreciated and paid off. She keeps excellent records, and for 2021 has the following items: 6,850 business miles, tolls $150, parking $75, gas $885, maintenance $350, registration $100, and insurance $1,500. In her first year claiming the vehicle, she used the actual expense method.For 2021, which rate is her best option, and what would her deduction be?
Tirta has a home décor consulting business. She drives a 2013 Chevy Sonic (which she only uses for business) to her clients' houses for meetings. The vehicle is fully
The actual expenses includes summation of all expenses incurred actually in relation to the vehicle.
The actual expenses includes gas, maintenance, registration, insurance etc.
Business miles not to be considered if actual expenses method is followed.
The resulting rate from actual expense method is called actual mileage rate.
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