Question

# Jackson, who is self-employed, uses his automobile 92% for business and during 2018 drove a total...

Jackson, who is self-employed, uses his automobile 92% for business and during 2018 drove a total of 23,400 business miles. Information regarding his car expenses is listed below.

 Business parking \$ 210 Auto insurance 2,100 Auto club dues (includes towing service) 252 Toll road charges (business-related) 315 Oil changes and engine tune-ups 336 Repairs 231 Depreciation allowable 4,200 Fines for traffic violations (incurred during business use) 420 Gasoline purchases 4,620

What is Jackson's deduction in 2018 for the use of his car if he uses:

a. The actual cost method?
\$

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b. The automatic mileage method?
\$

a. The actual cost method

b. the automatic mileage method

As per the IRS website, standard mileage rate for 2018 is 54.5 cents, hence,

Deduction allowed = (Bussiness miles * 54.5 cents) + business parking + toll charges

=23400*54.5 + 210 + 315

=13,278

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