Mario owns his own business and drives his car 15,000 miles a
year for business and 7,500 miles a year for communiting and
personal use. He wants to claim the largest tax deduction possible
for business use of his car. His total auto expense for 2017 are as
follows:
?Gas oil, and maintenance...$8,900
Insurace.................................800
Interest on car loan...............480
?Depreciation.........................3,160
License.................................180
Parking fee...........................290
?What is Mario's 2017 deduction using the standard mileage rate
method?
?Please help me. Thank you!
Note :
Answer
Mario's 2017 deduction using the standard mileage rate method
Standard rate deduction (15,000 miles * 53.50 cents) | $8,025 |
Interest on Car loan ($480 * 66.67 %) | $320 |
Parking fee | $290 |
Mario's 2017 deduction for business use of car | $8,635 |
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