Individual Income Taxes
Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 9, Problem 28P

a.

To determine

Compute Mr. J’s deduction under actual cost method.

b.

To determine

Compute Mr. J’s deduction under automatic mileage method.

c.

To determine

Explain the records that Mr. J should maintain.

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In 2020, Mary Kelly drove her personal car 2,800 miles for business purposes. She also incurred $182 in parking fees and $191 in turnpike tolls connected with her business trips. Compute Mary’s deduction for automobile expenses on her current year tax return, assuming all of the above expenses are valid and she elects to use the standard mileage allowance method to compute her deduction for automobile expenses. Assume Mary is self-employed.
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Chapter 9 Solutions

Individual Income Taxes

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