Question

# 1. Jose purchased a vehicle for business and personal use. In 2019, he used the vehicle...

1. Jose purchased a vehicle for business and personal use. In 2019, he used the vehicle 17,500 miles (80% of total) for business and calculated his vehicle expenses using the standard mileage rate (mileage was incurred ratably throughout the year). He paid \$1,600 in interest and \$155 in property taxes on the car.

Required:

Calculate the total business deduction related to the car:

Schedule C:

Schedule A:

2.

Jordan took a business trip from New York to Denver. She spent two days in travel, conducted business for nine days, and visited friends for five days. She incurred the following expenses:

 Airfare \$ 400 Lodging 2,000 Meals 500 Entertainment of clients 400

Required:

How much of these expenses can Jordan deduct? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar value.)

Deduction:

3.

Eric, who is single, has income from his Schedule C of \$112,500. His taxable income is \$90,000 after his other deductions.

Required:

What is Eric’s QBI deduction for 2019?

#### Homework Answers

Answer #1

Answer to Q NO 1

Total business deduction related to car

The business deduction will be allowed for car which is used for business purpose(80%)

Therefore interest paid = 80%(\$ 1600)

And Property tax paid = 80%(\$155)

Total 80% (\$1755) = \$1404 will be allowed as deduction for business

Answer to Q No 2

If any expenses incurred for official purpose then such expense shall be allowed as deduction

The following days will be considered as official.

2 days travel and 9 days for business trip = 11days

Total Expenses = \$400 + \$2000+ \$500+ \$400= \$ 3300 for 16days

Therefore for 11days \$ 3300 × 11÷16 = \$2268.75 = \$2269(approx) shall be allowed as deduction

Answer to Q No 3

QBI deduction shall be allowed for filing with single status and having taxable income less than \$157500 is 20%allowed as deduction

Therefore 20 % (\$112500) =\$22500 shall be allowed as QBI deduction.

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