Question

In: Accounting

26 Sandra comes into your office for advice about using her vehicle in her cleaning business....

26 Sandra comes into your office for advice about using her vehicle in her cleaning business. She estimates that her business mileage and expenses will be about 75% of her total use and she will be using this vehicle for the next five years. She would like to have a deduction each year for the vehicle. What advice would you give?
A.- Recommend that she use SMR because the record keeping requirements are easier. Then explain how to keep a mileage log.
B.- Recommend that she use actual expenses because she will get a higher deduction. Explain recordkeeping requirements.
C.- Use the maximum depreciation in the first year, along with actual expenses. Thereafter, just keep track of expenses.
D.- Show her the options available, SMR and actual expenses, along with estimates of each type of deduction and let her make the choice.
30 A taxpayer could incur travel expenses if they are:
A.- Away from their tax home on business for a time period substantially longer than an ordinary day's work, and they are in need of rest to meet the demands of that work.
B.- Working at a second job on the same day they worked at their regular job.
C.- Working at a new location on an indefinite assignment.
D.- Working outside their area of domicile for a time period substantially longer than an ordinary day's work, and they are in need of rest to meet the demands of that work.
Tax - Intermediate Vehicle Expense [2019]
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Solutions

Expert Solution

Q29: Answer is : D.- Show her the options available, SMR and actual expenses, along with estimates of each type of deduction and let her make the choice.

30 Answer is : A.- Away from their tax home on business for a time period substantially longer than an ordinary day's work, and they are in need of rest to meet the demands of that work.


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