Question

In: Accounting

Jackson, a self-employed taxpayer, uses his automobile 82% for business and during 2020 drove a total...

Jackson, a self-employed taxpayer, uses his automobile 82% for business and during 2020 drove a total of 27,600 business miles. Information regarding his car expenses is listed below.

Business parking $ 260
Auto insurance 2,600
Auto club dues (includes towing service) 312
Toll road charges (business-related) 390
Oil changes and engine tune-ups 416
Repairs 286
Depreciation allowable 5,200
Fines for traffic violations (incurred during business use) 520
Gasoline purchases 5,720

What is Jackson's deduction in 2020 for the use of his car if he uses:

If required, round your answers to nearest dollar.

a. The actual cost method?

answer is not 12875, thank you.

Solutions

Expert Solution

Amount $
Business parking (260 x 100% )                     260
Auto insurance (2,600 x 82% )                  2,132
Auto club dues (includes towing service) ( 312 x 82% )                     256
Toll road charges (business-related)                     390
Oil changes and engine tune-ups ( 416 x 82% )                     341
Repairs ( 286 x 82% )                     235
Depreciation allowable ( 5,200 x 82% )                  4,264
Gasoline purchases ( 5,720 x 82% )                  4,690
Actual Cost method- Deduction for 2020      12,568
Note:
Fines for traffic violations (incurred during business use) will not be allowed as Deduction.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Jackson, a self-employed taxpayer, uses his automobile 90% for business and during 2019 drove a total...
Jackson, a self-employed taxpayer, uses his automobile 90% for business and during 2019 drove a total of 14,000 business miles. Information regarding his car expenses is listed below. Business parking $ 140 Auto insurance 1,300 Auto club dues (includes towing service) 180 Toll road charges (business-related) 200 Oil changes and engine tune-ups 210 Repairs 160 Depreciation allowable 2,850 Fines for traffic violations (incurred during business use) 320 Gasoline purchases 2,800 What is Jackson’s deduction in 2019 for the use of...
Jackson, a self-employed taxpayer, uses his automobile 72% for business and during 2019 drove a total...
Jackson, a self-employed taxpayer, uses his automobile 72% for business and during 2019 drove a total of 16,400 business miles. Information regarding his car expenses is listed below. Business parking $ 220 Auto insurance 2,200 Auto club dues (includes towing service) 264 Toll road charges (business-related) 330 Oil changes and engine tune-ups 352 Repairs 242 Depreciation allowable 4,400 Fines for traffic violations (incurred during business use) 440 Gasoline purchases 4,840 What is Jackson's deduction in 2019 for the use of...
Jackson uses his automobile 82% for business and during 2017 drove a total of 16,400 business...
Jackson uses his automobile 82% for business and during 2017 drove a total of 16,400 business miles. Information regarding his car expenses is listed below. Business parking       $ 290 Auto insurance          2,900 Auto club dues (includes towing service) 348 Toll road charges (business-related)         435 Oil changes and engine tune-ups   464 Repairs           319 Depreciation allowable         5,800 Fines for traffic violations (incurred during business use)         580 Gasoline purchases   6,380 What is Jackson's deduction in 2017 for the use of his car if...
Car and Truck Expense. (Obj. 3)Keith is self-employed. During 2018, he drove his car a total...
Car and Truck Expense. (Obj. 3)Keith is self-employed. During 2018, he drove his car a total of 9,169 miles for work. He drove a total of 21,468 miles during the year. His car expenses for the year were as follows. Business parking and tolls 360 Depreciation 1475 Gas 2557 Insurance 940 License tags 50 Repairs and maintenance 52 5434 a. Compute Keith’s car expense deduction using the standard mileage rate. b. Compute Keith’s car expense deduction using the actual cost...
Mack, a self-employed taxpayer, spent $1,200 on an insurance policy that covers his business from July...
Mack, a self-employed taxpayer, spent $1,200 on an insurance policy that covers his business from July 1, 2019, to June 30, 2020. How much will Mack deduct in 2019 if he is a cash basis taxpayer? accrual basis?
____ 4. Stephanie is self-employed. In 2019 she drove 1,000 miles for business out of a...
____ 4. Stephanie is self-employed. In 2019 she drove 1,000 miles for business out of a total 10,000 miles for the year. Her auto expenses for the year were: gasoline - $500; insurance - $1,000; repairs - $200; business parking - $400. How much is her automobile deduction if she uses the standard mileage method?             a.         $580             b.         $980             c.         $2,680             d.         $2,100             e.         $210             f.          $0. ____ 5. An aggressive young attorney is...
Colin, a self-employed consultant, uses a room of his home as a business office. This room...
Colin, a self-employed consultant, uses a room of his home as a business office. This room represents 10 percent of the home’s square footage. This year, Colin incurred the following expenses in connection with his home: Use Table 7-3 and Table 7-4. Home mortgage interest $ 12,980 Property tax on residence 2,200 Homeowner’s insurance 1,475 Utilities 2,100 Furnace repairs 300 Colin purchased the home in 2000 for $225,000. For MACRS depreciation purposes, he allocated $185,000 to the building and $40,000...
Colin, a self-employed consultant, uses a room of his home as a business office. This room...
Colin, a self-employed consultant, uses a room of his home as a business office. This room represents 10 percent of the home's square footage. This year, Colin incurred the following in connection with his home: Home Mortgage interest $12,980 Property tax on residence 2,200 Homeowner’s insurance 1,475 Utilities 2,100 Furnace Repairs 300 Colin purchased the home in 2000 for $225,000. For MACRS depreciation purposes, he allocated $185,000 to the building and $40,000 to the land. a. If Colin’s gross business...
Scott Butterfield is self-employed as a CPA. He uses the cash method of accounting, and his...
Scott Butterfield is self-employed as a CPA. He uses the cash method of accounting, and his Social Security number is 644-47-7833. His principal business code is 541211. Scott's CPA practice is located at 678 Third Street, Riverside, CA 92860. Scott’s income statement for the year shows the following: Income Statement Scott Butterfield, CPA Income Statement 12/31/2017 Current Period Prior Period 1/1/2017 to 12/31/2017 1/1/2016 to 12/31/2016 REVENUES Tax Services $276,400 $72,154 Accounting Services 27,640 50,256 Other Consulting Services 60,808 7,690...
Hugh, a self-employed individual, paid the following amounts during the year 2020: Real estate tax on...
Hugh, a self-employed individual, paid the following amounts during the year 2020: Real estate tax on Texas residence   $2,000 State income tax withheld   1,500 Additional state income tax paid when filing his 2019 tax return 600 Real estate tax on a rental property   2,000 State sales taxes 900 State motor vehicle tax (based on the value of personal use automobile) 400 Sidewalk special assessment   2,000 Federal income tax   5,000 Self-employment tax   1,000 Gambling loss (gambling winning is $100)   1,000 What...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT