Question

Rod uses his automobile for both business and personal use and claims the automatic mileage rate for all purposes. During 2015, his mileage was as follows: Miles Driven Personal 4,000 Business 8,000 Qualifying moving expense 3,500 Medical 1,800 Charitable 1,500 Qualifying education (MBA program) 800 How much can Rod claim for mileage?

Answer 1

Answer : - $

Total mileage Rod can claim = 8,000 (business) + 3,500 (moving expense) + 1,800 (medical) + 1,500 (charitable) + 800 (education) = 15,600 miles.

Business miles and education = 8,800 miles × $0.565 per mile = $4,972.

Moving expense = 3,500 miles × $0.24 per mile = $840

Medical = 1,800 miles × $0.24 per mile = $432

Charitable = 1,500 miles × $0.14 per mile = $210.

Total Rod's claim for mileage = $4,972 + $840 + $432 +$210 = $6,454.

Note : - Miles Driven for personal use will not be considered in claim. As the personal use is for Rod's personal work and not for business or educational purposes.