What is Jackson's deduction in 2020 for the use of his car if he uses: If required, round your answers to nearest dollar. a. The actual cost method? b. The automatic mileage method? 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 If the 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).
What is Jackson's deduction in 2020 for the use of his car if he uses: If required, round your answers to nearest dollar. a. The actual cost method? b. The automatic mileage method? 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 If the 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).
Chapter9: Deductions: Employee And Self- Employed-related Expenses
Section: Chapter Questions
Problem 28P
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Transcribed Image Text:Jackson, a self-employed taxpayer, uses his automobile 90% for business and during 2020 drove a total of 17,800 business miles.
Information regarding his car expenses is listed below.
Business parking
$ 290
Auto insurance
2,900
Auto club dues (includes towing service)
348
Toll road charges (business-related)
435
Oil changes and engine tune-ups
464
Repairs
319
Depreciation allowable
5,800
Fines for traffic violations (incurred during business use)
580
Gasoline purchases
6,380
What is Jackson's deduction in 2020 for the use of his car if he uses:
If required, round your answers to nearest dollar.
a. The actual cost method?
b. The automatic mileage method?
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
. If the
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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